问个mortgage问题，可不可以refinacing啊
- 主题发起人 Jay Wang
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Check with your bank to see if it's worth it to break the current contract to have a new lower interest one. Basically compare the penalty(plus discharge fee, legal fee) you need to pay vs the interest saving for the lower mortgage. Some bank opens your mortgage after a few years not have to be the full term(e.g 5 yr term mortgage may become open after 3 yr) if that's the case, there's no penalty to refinancing.
If you work with a broker, you can let him do the analysis for you and give you recommendation.
If you work with a broker, you can let him do the analysis for you and give you recommendation.
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I'm not sure if a mortgage broker will give you much help in refinancing.
A mortgage specialist with your current lender probably can give you better suggestions on how to make things work for you.
If you still have a large amount and/or a fairly long time left inyour existing mortgage contract, refinancing the current mortgage per se to a lower rate could result in siginicant prepayment penalty. You have to know how big the number is before deciding your course of actions.
If the penalty would be steep but you really want to do something to bring down your interest rate, what you can consider is to keep the current mortgage intact, refinance only the "top-up" amount up to 80% of the property value, and essentially keep a 2-component mortgage with different interest rates and terms. You then use the fund from the 2nd (refinanced) component to pay off your higher interest debt (if any). For example, exhaust and maximize all prepayment options allowed for your first mortgage, if you have not been able to do so before. This way you will take on more debt, but offset the interest rate on your existing debt.
This may or may not work for a specific case, depending on one's debt load structure. Do the math and see if there is a magic balance point for you.
A mortgage specialist with your current lender probably can give you better suggestions on how to make things work for you.
If you still have a large amount and/or a fairly long time left inyour existing mortgage contract, refinancing the current mortgage per se to a lower rate could result in siginicant prepayment penalty. You have to know how big the number is before deciding your course of actions.
If the penalty would be steep but you really want to do something to bring down your interest rate, what you can consider is to keep the current mortgage intact, refinance only the "top-up" amount up to 80% of the property value, and essentially keep a 2-component mortgage with different interest rates and terms. You then use the fund from the 2nd (refinanced) component to pay off your higher interest debt (if any). For example, exhaust and maximize all prepayment options allowed for your first mortgage, if you have not been able to do so before. This way you will take on more debt, but offset the interest rate on your existing debt.
This may or may not work for a specific case, depending on one's debt load structure. Do the math and see if there is a magic balance point for you.
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URL your method is too complex and not suitable for only bring down a few points for most of Chineses cases. The debt swap is more suitable for those western people who carries lots of high interest credit card debts, IMHO.
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You are very right, Uglyduckling, that the approach might be an overkill to some (not because of complexity, because there is little extra). However, it still can be a savvy option to our prudent fellow Chinese, IMHO. A mortgage deal is not just about interest rate but also prepayment options. For example, most lenders allow "double up" payment but how many people could manage/afford to do it all the time? What if you have a low cost fund at your disposal?
Anyway, my main point in the last post was that one could get a second mortgage through refinancing without penalty, and that might help bring up some new possibilities.
Anyway, my main point in the last post was that one could get a second mortgage through refinancing without penalty, and that might help bring up some new possibilities.
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Good point, agree with you george. 
