The Many Reasons to Find Your "ah-HAH" Moment

Once again last week while speaking with a potential Borrower, I was asked the question, "is it worth the hassle and time to Refinance my mortgage"?

I get similar questions touching upon the "hassle" and difficulty of obtaining a current mortgage fairly often. As a result, I've addressed the issue in quite a few blog posts ... most recently in my post, "Is It Worth it? A Reflection on the Current Chicagoland Mortgage Process".

In that post, I shared the many benefits that would be reaped by my clients through their Refinance. All I felt more than justified the effort and expenditure of time that these clients were being called upon to make. They came to agree.

But the fact that I get asked this question so frequently has made me think that I'm facing an uphill battle. And that I need to find a better way to answer. I need to provide something that will help people have that "ah-Hah!" moment. I'm hoping the below does just that ...

Let's consider the following hypothetical, but typical couple:

They've contacted me interested in investigating the benefits of a Refinance for their current Mortgage. They've stated that they hope to remain in their current property 5 years or more into the future. Based upon the info they've provided and after I've conducted their Mortgage Analysis, we've found that they'll save a little over $2000 per year if they Refinance to a lower Interest Rate at this time. They'll also cut 10 years off their loan term. I say not bad!

The above is the typical argument made for Refinancing. And I think it's a very valid and strong one. Interest Rates have been and are still historically low. So low, that Borrowers can now Refinance to a new mortgage with shorter loan terms and pay off their Mortgages much more quickly.

Still, is the info provided above convincing enough to make this couple proceed? Is it worth this couple's time and effort? Let's weigh this question out even further ...

My couple makes $6000 per month between the two of them. Their bank accounts show they've saved very little/nothing prior to or during the year that they've been mulling over a Refinance. In that time, Interest Rates have also moved upward.

Should they decide to proceed with their Refinancing, they'll be asked to produce financial documents. Yes, there is an expenditure of time and effort to gather the documents, but most (paystubs/tax returns/bank and current mortgage statements) should be fairly easily found or at their disposal. (Click HERE for a list of the documents and paperwork typically needed during the Mortgage Process.)

My couple will also have to take the time to apply for their mortgage. But this is often easily accomplished via the internet ... from the comfort of their own home or convenience of their work place. If they wish, they also can simply choose to call me and accomplish this over the phone at a time that is convenient for them.

Further communications may be needed as we proceed through their processing. More questions may need to be asked. More documentation may need to be produced. No doubt about it, Underwriters and Lenders demand far more information than they ever did in the past.

Unless they have a Lender-approved Power of Attorney, specific to the real estate transaction, this couple will have to attend their Mortgage Closing. But many times, a Mortgage Closing can be set and conducted at their convenience ... or even held within their own home. Definitely something that never occurred years ago.

Need more convincing? Let's revisit some facts for this couple ...

Savings accomplished over the last year = $0
Projected Savings in the Future at current Interest Rate = $0 (or very little)

Savings realized per year after Refinancing = $2,000 Savings realized from Refinancing if they stay in the home their projected 5+ years = $10,000+

My question is ...

How much time, effort, and inconvenience does this couple have to make during the processing of their Refinancing to equal $10,000+ in savings? 5 hours? 10 hours? More?

If this couple does NOT choose to Refinance, how much effort will it take ... and how quickly do you think they'll be able to save that $10,000+?

Do you agree it's more than a little inconvenient to NOT be able to save?? That's it more than a little inconvenient to pay on a mortgage for an additional 10 years??

The many reasons to find your "ah-HAH" moment. Hopefully, I've helped you find yours. Contact me today and we'll discuss YOUR financing options ...


* Thinking of Refinancing or Buying a Home in New Lenox, Will/DuPage County, or elsewhere in the Chicagoland region? Contact me now! I'll put my 36+ years of mortgage experience and expertise hard to work on your behalf.
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