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Whitby Mortgage Refinancing
What is mortgage refinancing?Recalibrating a mortgage... this is basically what Mortgage Refinancing is, it is completely recalibrating your existing mortgage loan with a new lender and with new terms, monthly payments, interest rate and amortization schedule. But, what would provoke home owners to want to change their current mortgage agreement? Promises of cheaper interest rates and lower monthly payments is what usually hooks home owners to investigate Whitby Mortgage Refinancing. However, saving money always comes at a cost, so home owners need to be familiar with what exactly takes place before executing Mortgage Refinancing or signing ANYTHING.
How does mortgage refinancing work?There is a very fine line when it comes to Mortgage Refinancing and the first thing home owners should be aware of is the preliminary process to being approved for Whitby Mortgage Refinancing. That’s right, as the home owner, your current lender will most likely charge you a penalty fee for switching your mortgage loan with them to a new lender that will provide you with Mortgage Refinancing. With the new lender, you will be required to apply for another mortgage loan from scratch through an application process and yes, you will most likely have to once again pay out closing costs and related fees (some lenders will waive these costs to get your business). If you are approved for Mortgage Refinancing, then your original mortgage loan is then replaced with a new and hopefully improved mortgage loan.
How to use morgtage refinancing to lower your monthly expenses?Whitby Mortgage Refinancing can be a tricky way of making updated changes to your existing mortgage because of the upfront costs and possible penalty from your current lender. The Mortgage Refinancing lender must be able to show you exactly HOW you would save money each month and annually, keeping in mind if you lower your interest rate and you lower your monthly payment, but end up extending your amortization schedule, then you are not saving any money in the long run, you will end up paying MORE. If your Mortgage Refinancing lender CAN show you just how you can cleverly save money by ‘working the numbers’ and balancing the amortization schedule with the reduction in interest & payments, then this would be a huge gainful impact for you! You will then see in writing the savings of using Whitby Mortgage Refinancing and how it will work to your benefit financially over the duration of the new mortgage loan.
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