Time for saying no for refinancing

[davidhain]

You Can’t Afford the Fees

Refinancing mortgage from Safebridge Financial or Trend financial involves the process of breaking your ongoing mortgage term and looking for a replacement for . Because you’re breaking one term, you need to pay a penalty fee for breaking the bond with the previous lender.. Consider these points if you have fixed rate mortgage

1. you’ll pay the greater of three months’ interest or the interest rate differential.
2. With a variable rate mortgage, you’ll just pay three months’ interest.

Both options can cost thousands of dollars and you’ll likely also have to pay legal and lender’s fees on top of that. If you can’t afford the fees involved, refinancing may not be an option for you.

[lorraineb]

This is a bit deceiving since most mortgage companies will let you refinance without a penalty. That being said, this is a cautionary tale to make sure that there are no fees and penalties if you pay off your loans quicker than required when you sign for a loan.

[clydefreeman]

Yes, most of companies are like this. It is one way of getting interest to the people to make their company get income.

[simonclay111]

You are absolutely right. some of the companies do that. Some charges high interest and some make it available at low interests. All depends on their policies. In both cases we have to pay a fees for refinancing. in short we can say that mortgage refinancing can save homeowners money, or get them into a lot of financial trouble.