How I’m saving thousands by refinancing my mortgage

How refinancing your mortgage could save you thousands of dollars

 

Earlier this year I had one of my loans roll over (my mortgage is in 3 parts) and annoyingly, since interest rates had gone up since 2016, I wound up paying something like $20 a fortnight more. (Ish? I’m too lazy to go check.)

Such is life in NZ where we don’t have fixed rates for 30 years.

I refixed that loan for another year, and figured I’d look at a full refinance the same time next year when everything would come up for renewal. If you are looking for information on reverse mortgage Grants Pass Oregon then you should be able to find the answers to at least some of your questions. A reverse annuity mortgage is a home loan product for home owners over the age of 62. To qualify for this loan you will need to own at least a 75 percent interest in your home. A reverse mortgage basically is a home equity loan that is based on the current market value of your home and the amount that you still owe on the property. Generally you can use the money in anyway that you see fit, however, there are some programs that will restrict what you can use the money for. These restrictions will be discussed later on. Another great feature of the reverse mortgage is that you don’t have to pay a monthly mortgage payment, however, if you sell the home or pass away then the loan will need to be repaid by the proceeds from the sale or from your estate. Not every mortgage lender that offers home loans will offer a reverse mortgage program. To find one of these programs you may need to talk to mortgage brokers or to non-profit agencies such as HUD. These mortgage professionals will not only be able to give you more information about how reverse mortgages work, but they will also be able to direct you to reverse mortgage lenders. As mentioned above there may be some lenders that put limits on what you can use the money from your reverse mortgage for. This is generally the case if you finance your reverse mortgage through a non-profit agency or a federal grant program. If you want to be able to use the money from your reverse mortgage for anything that you want, then you will need to find a private lender to work with. Again a local mortgage broker or your local bank will be able to provide you with more information on reverse mortgages.

But last month I refinanced it all to a new bank. Our goal is to make the process fun and stress-free for new homeowners like you with Orange County mortgage broker. In each state there are thousands of mortgage brokers. Metropolitan Mortgage – Kansas City home loans, we provide a stress-free home buying experience. How do you know which one to choose so that you will end up at the closing table on time with the interest rate, loan terms and fees promised to you? Here are some tips and data that hopefully will give you the information and tools needed to find the right mortgage broker, how to work with them and to help minimize the risks before you get to the closing table. Most every mortgage broker is listed on the Internet. While it is a great resource, it is not the best way to shop for a mortgage. It may be obvious to some, but just because a mortgage broker’s Web site shows up high on search engine listings does not mean they have the lowest rates or have the best service or are even reputable.  To find about how to get a normal home loan visit us today. High search engine rankings do not speak to these factors, but rather to the fact that the webmaster who built the Web site probably spent hundreds of hours building and fine-tuning their site to show up on the Internet listings when you type in certain mortgage “keywords”. Search engines do not rank listings by the quality or reputation of a broker but more by the amount of other similar Web sites that link to that Web site, the amount of visitors it receives, how much the broker may have paid to be listed there and many other factors.

 

Why? So so much has been happening moneywise: a bit of which I actually can’t write about, the rest which I will get around to soon. Rеfіnаnсе hоmе іѕ in vоguе еѕресіаllу with rеduсtіоn іn interest rates. Rеfіnаnсе іѕ still gоіng ѕtrоng wіth 40% of the home loan аррlісаtіоnѕ being fіllеd іn fоr rеfіnаnсіng hоmе loans. Homeowners rеаlіzе thаt thеrе іѕ enough еԛuіtу in the hоmе tо refinance аnd convert into саѕh and сrеdіt. Fеw реорlе realize how much thеу саn benefit with hоmе rеfіnаnсе. Get the facts about valuable reasons to consider if you want to refinance your home.

The main takeaway is, I’ll now be saving nearly $90 a fortnight, which is nothing to sniff at!

Between rates falling a bit in the past few months and the new bank offering a sharp deal, I start saving money right away. I got $3k cashback, which covered the break fees (just under $1000) and also the cash clawback.

The what?! Well, when I took out this mortgage back in 2016 they gave me $1200 in cash. To know more about Reverse Mortgage Pros visit us here. Annoyingly, there was no paperwork outlining the conditions of this (I only have an email confirming the amount, nothing about the payback period). I would have assumed the clawback was proportional over time (as it is with the new bank – I made sure to get this down in an email this time), but no, they required the full cashback amount be paid back in full if I left early.  

I’m slightly out of pocket right now due to the lawyer fees for the refinance process but the fortnightly savings will quickly make up for that.

I’ve also now been able to set up the floating part of the mortgage as offset, so the positive balances in my accounts will reduce the amount of interest charged on that part of the mortgage. It’s not a huge amount right now (a few grand offsetting $25k). But early next year I expect to have a much larger lump sum come in (a topic for another future post) and sit around for a little while – and that will be handy.

Ever been through a refinance? How’d you find the process?

5 thoughts on “How I’m saving thousands by refinancing my mortgage

  • Reply Rohan August 7, 2018 at 21:12

    Nice work. Everyone needs to learn to shop around more with their mortgage. There are definitely some savings to be had. We were in the same situation earlier this year. And just for switching we pocketed over 5K and a better interest rate.

  • Reply Kara August 8, 2018 at 03:15

    We’ve gone through one refinance on our mortgage and found the process to be very easy thanks to our broker. The hardest decision was deciding whether or not to go with a fixed or variable mortgage, and for how long we wanted to lock things in for.

  • Reply GreenDollarBills August 15, 2018 at 07:25

    I was such a fool – I fixed for 5 years at 2.54% thinking that rates would go up. This was 3 years ago and they’ve gone virtually nowhere here in the UK. Well done for taking the opportunity!

  • Reply Funny about Money August 19, 2018 at 13:56

    My son and I refinanced a house we co-purchased twice: once at the bottom of the Bush Recession, when it looked like we might have to default, and then later my son refinanced to get my name off the loan and the title, after it became apparent he would never get another job in San Francisco that could support him comfortably and so he was pretty much stuck here in Arizona. Both times he managed these transactions through our credit union, so it wasn’t too much of a horror show. Just lots of time-sucking paperwork.

  • Reply Ramona @ Personal Finance Today September 18, 2018 at 00:37

    Wow, smart move. I’d say a refinance can be costly, if not done properly, but, in your case, you’re actually saving A LOT of bucks. This is way you should always get informed and be willing to make the chance for the better. Congratulations for such a smart move.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.