Time to Refinance?

Your real estate and mortgage professionals should, above all, help you make informed decisions that benefit you throughout your life. They are not order-takers; they are advisors. Find advisors you can relate to and trust and tell them what you need.

Though this column often suggests that:

(1) you take matters into your own hands when buying a home, using your real estate professional as an invaluable coach, not as the person making your decisions for you and

(2) that you will thank yourself for the rest of your life if you buy the home that is right for you when you find it, not when television economists say it’s the right time to buy—we must suggest that you truly give yourself all the time and advice you can get when it comes to refinancing your home mortgage.

Consider the case of the homeowner with a mortgage that is performing very poorly for her. Perhaps it’s an adjustable rate mortgage and its terms allowed the rate and monthly payment to climb sky high at the first adjustment. She will want to find a mortgage professional whom she can relate to and trust, someone who will walk through all her options with her and suggest all possible ways of improving her situation—someone, too, who will keep her in mind as market rates and available mortgage programs go through their changes, calling her when a genuinely appropriate opportunity arises.

Now consider the case of the homeowner who knows far too little about the workings of mortgages and is continuously refinancing in an effort to get the lowest possible rate. This person needs a deeper understanding of when it will—and when it will not—serve him to refinance. Sometimes, you see, the loan with which you refinance may provide a lower monthly payment….but the piper will eventually have to be paid, as interest rates force his overall obligation higher over the life of the loan.

Your real estate and mortgage professionals should, above all, help you make informed decisions that benefit you throughout your life. They are not order-takers; they are advisors. Find advisors you can relate to and trust and tell them what you need. You’ll be glad you did! For more information call Beth at 425-450-5208 and visit her website at www.bethbillington.com.