• Refinancing is Good? How To Know

    June 3, 2020
  • Refinancing is Good? How To Know

    refinancing is good

    Lead Mortgage Broker with over 30 years of mortgage expertise, currently at Mortgage Architects.

    To refinance or not to refinance…that is the question.

    Money is tight…I can’t sleep.

    My kitchen has not been updated since man first walked on the moon.

    Ask Yourself If Refinancing Is Good, Will It Improve Your Life?

    Most of our clients know in their heart whether they should refinance. The easy answer is “will it make your life better. But we always get “what do you think?”. Our answer is simple: Will this improve your situation. Clients need to be reassured as finances frighten them and they do not want to make a mistake. Today, we will analyze the two most common reasons we consider adding more money to our mortgage.

    Don’t Let Money Control Your Life

    Jim and Mary’s mortgage was coming up for renewal. After discussing options, Mary asked if it was a good idea to refinance. After asking her a few questions, I soon discovered the couple amassed $95,000 in revolving credit. They were paying 3 times more on the outside debt than on in their mortgage. Were they happy with this situation? No. In fact, a BIG no. They were cash strapped, living paycheck to paycheck, stressed and most importantly, scared. A refinance was their salvation to improve their world. The money was controlling their lives instead of Jim and Mary controlling the money themselves. The decision to go forward was an easy decision to improve their finances and most importantly, their lives.

    Refinancing Is Good When It Solves An Issue

    Having a home is a source of pride, but not when you’re ashamed of bringing friends over. This happened to a couple we had recently. The house was solid but an amateur could tell it needed help. The roof, eaves, flooring and kitchen needed work and unfortunately, it needed it quickly. Luckily for the couple, rates were low and it was easily affordable. Was the refinance positive? Yes. It solved their issues. The home was in need of repairs and renovations, but more importantly, it solved their problem. It was economic and especially the wife in this case felt a source of happiness and pride. Again, the quick answer is that did it feel better in improving their life? It also did not hurt adding market value to the home.

    Deciding Whether Or Not To Refinance

    Whether to refinance is really a simple decision. The mortgage client must be selfish and have a disciplined answer as to why or why not refinancing is a good decision. Part two is whether it improved your life. Did it remove stress? Solve a problem? Make me happier? The last and maybe most important question is ‘Did I learn anything?’. In Jim and Mary’s case, we hope they thought we do not want us to see Robert or any other bank in the future. Instead of giving my money to financial institutions, I will pay myself first so that I am ready for the next emergency. With the other couple, it might be doing a project every year or two years. Refinancing is an excellent decision, but only when done for the right reasons.

    Robert Floris has been in the mortgage industry for 30 years, including working as a Sales Manager for a major chartered bank. Over his career, he has personally lent over 1 billion dollars and proudly continues to advise and tutor his valuable clients.

    Robert Floris is a Mortgage Broker. His office is located at 651 Fennell Avenue East in Hamilton, Ontario. If you would like to speak with Robert, he can be reached at 905-574-9200 #215. Alternatively, you can contact Robert here.

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