Refinancing In A Recovering Economy
So, today’s economic news does not make the average stock investor happy. Unemployment is high; states, municipalities and the federal government are having record debt crisis; jobless claims are going up– we are certainly not in Kansas anymore. Every day you turn on the television or listen to the radio, reporters and commentators spew doom and gloom. But, the news isn’t all that terrible, and you might be in a unique position to refinance.
Let’s say that your job is pretty secure, the interest rates are more than a full percentage point below what you have now, and you are planning to stay in your home for a while. If this sounds like your current situation, then it may be the perfect time for you to refinance. Jackpot!
Some people make the mistake of refinancing when their job is at stake, or when they are trying to reconsolidate all of their debt. During uncertain economic times, people run out and try to find cash in order to pay off things they need now, with no real outlook on how they’re going to pay back the money they borrowed. That could be a disaster waiting to happen and could turn uncertain financial times into disastrous financial times. And, if you refinance to an adjustable rate mortgage and someone loses their job—well that can be a very bad scenario too.
But, if you’re just looking for some peace of mind, and you already have a stable credit history and a career that you know will be with you for a long time to come, refinancing could be just the thing. As mentioned, interest rates are at an all-time low, and predicted to stay that way for two or more years. By refinancing your short-term loan into one with a longer term, you’ll be able to save a little money each month now, and still rest easy in the knowledge that your job and your income will still be there for you to pay for it tomorrow. And while you’re at it, why not take that money you’re saving by refinancing your home and invest in your retirement by putting it into your RRSPs?
Also, remember a bank can be like your friend. The one you have known the longest may be the one that will give you the best advice. Banks like having relationships with borrowers. So, if you have a long standing relationship with your credit union or bank down the street from your job, go in there one day and chat with one of the bankers. They can be very helpful and informative.
But, and this is a BIG but, you must read the terms of your mortgage. And, remember to think about health concerns for you (and your partner if you are doing the refinance with another person), if your property values are stable and, overall, the security of your job and your partners job (if you are doing the refinance with another person). If you’re not sure about the current value of your home, speak to a real estate agent or the bank loan officer when you speak to them. It’s one of the many valuable pieces of advice they’ll be able to give you while you go through the refinancing process!
For more information on <a href=” http://www.canadianmortgagesinc.ca/home_refinancing/”> Home refinancing</a> and <a href=” http://www.canadianmortgagesinc.ca/home_equity_loans/”> Home equity loan</a> visit most trusted and experienced mortgage broker at www.canadianmortgageinc.ca or call 1-888-465-1432 to speak to an experienced broker agent.
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