There is a common mistake people make when it comes to their mortgages, they don’t really pay any attention to them. And before they know it they are so close to the closing date of their mortgage that they are racing to refinance, which is not an ideal position to be in. My Dad always told me that “the best time to buy a car is when you don’t need one.”
Why? Because you wont have your mind clouded by the stress and urgency of NEEDING a car when it breaks down or gives out and you will usually end up making a better decision. The same principle applies to mortgages. Except in this instance it is even more important because you are dealing with such large sums. Here are a few tips to help you be in the best position possible…
Do an Annual Checkup
Just like when it comes to your health, regular checkups are very beneficial and can be very enlightening and can equip you to make good decisions. So I recommend to once a year pull out your mortgage and take a good look at it and give your mortgage expert a call and let him check out what your options are. What adjustments can be made when you refinance to accommodate your current circumstances? What are current rates at? Could you take advantage of them somehow?
Don’t Do This!
Many times as people approach the end of their term the banks will pressure you to refinance with them. DON’T DO IT, at least not yet. It is always wise to call your mortgage professional to see what your options are. Remember “forewarned is fore armed” so get out your mortgage find the closing date and mark the date 6 months before the end of your term. Then call your mortgage pro and start checking out your options.
These are just a few tidbits of advice that will help you to make the best decisions possible when it comes to your mortgage. And it will likely help you avoid the stress of rushing to refinance.
By John Hester