In today’s finance minute, let’s talk about the costly mistakes to avoid when refinancing your mortgage.
They are as follows:
- Failing to review all your options. When you don’t review or compare your options and refinance with just your bank, you may not realize that there are many ways you can save money. Your lender will just tell you “their way” and there may be better rates or offers elsewhere or other more creative financing options that you don’t know that you don’t know.
- Refinancing too often. When you do this, you may not be maximizing your equity. You can use your equity for investments and write off the interest. However, when you refinance often for reasons other than Investments, you are not maximizing your wealth. You may be using it on items or events that may not grow your wealth.
- Not knowing your property value. When a lender or mortgage broker don’t do their due diligence, you may not be maximizing the equity available to you. Or worse you go through all the motions and then realize in the end you cannot do what you thought you could because the value they used was wrong. If you are dealing with an expert, they will research your property value to maximize the benefit of your refinance.
Make sure you avoid these mistakes and please Like and Share to help Others avoid these Mistakes too.