Run the numbers before refinancing your mortgage

The recent drop in mortgage interest rates has some home-buyers across Canada considering a refinance. Should you? That depends on your situation. If you have a variable-rate mortgage, then you don’t need to refinance to take advantage of lower rates, because lenders have already dropped their prime rate (which sets variable rates). If you have a fixed-rate mortgage, then refinancing outside of your mortgage term could mean paying a hefty prepayment penalty. If the savings you’d reap from the lower interest rate outweigh the penalty, then a refinance could make good financial sense. Oftentimes, though, you wouldn’t come out ahead because the penalty would be larger than the amount of interest you’d save over the term of your new loan.

In her latest article for Huffington Post BC, Atrina explains the factors to consider before refinancing and why it’s crucial to do the math before attempting to refi. Read Is Now the Time To Refinance? Run The Numbers First on Huffington Post BC.

 

 

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About Atrina Kouroshnia

Atrina Kouroshnia is an independent, licensed, mortgage broker in the province of British Columbia. She has a degree in Human Relations & Commerce, and past work experiences in HR & Real Estate Development. She comes to the table with great customer service and problem-solving skills. Her approach to finding the best mortgage solution involves both short and long-term planning, making sure her clients are in a suitable mortgage that is flexible to their needs.