Looking beyond a lower interest rate
Illustrative example — not a real client result
Comparing the overall costs of refinancing.
The challenge
A homeowner sees a lower advertised rate but wants to know whether switching loans would actually suit their circumstances.
The approach
- Compare interest, ongoing fees and the features the homeowner uses.
- Include switching costs and any break costs in the comparison.
- Check the effect of changing the remaining loan term.
Example outcome
In this example, the homeowner can compare the current loan with an alternative on a more complete basis.
A lower rate alone does not establish that refinancing is suitable.