I get a lot of calls from clients wondering if they should refinance their homes at the new lower interest rates. They look at the penalty and just assume it is not worth it, but thats’ not always true. The quick answer is “it depends”.

I know it sounds like a cop-out but the truth is it does depend on the individuals situation. The best way to find out is sit down and do the math. You have to calculate how much the penalty is and how much it will cost you in actual dollars to re-finance. this  may be a lot but don’t stop here. Now calculate how much you will save over the term of your new financing deal at the new interest rate. You may be surprised at the savings.

If this all seems like a lot, give me a call and I will help you calculate the numbers.

This entry was posted on Tuesday, March 16th, 2010 at 11:05 pm and is filed under Keith Macdonald's Blog. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.