Getting expert advice from a mortgage broker like Kelleway Mortgage Architect in Calgary can save you a lot of time and money.

Most people who have a mortgage have questions that come up over time. With the borrowing rates posted on your banks front door going up and down it seems at the same time it can be a bit confusing.

In general many people take advantage of making extra payments to bring the principal amount borrowed down faster. The belief and it is correct, that the sooner it is paid off, the cheaper it will be.

But borrowers refinance for several reasons: to reduce the rate; reduce payments, reduce risk of future rate increases, and to sometimes raise cash.

Making extra payments has the effect of shorting the life of the mortgage which of course reduces its total cost. This most people understand instinctively because it is obvious that the shorter the mortgage is the less interest you pay and thus the cost must be less.

Re-financing as a strategy to lower the cost on the other hand can work out if amount saves is less than the cost of re-financing and fees related to paying out the current mortgage.

The big question though is which strategy is best at what time. The only way to answer those questions is to get the advice of a certified Mortgage Broker like Kelleway Mortgage Architects in Calgary. Without tools to compare payments schedules, double check penalties and total up costs, your guess will probably as wrong as your dog’s.