Lower interest rates – great reasons to refinance your mortgage!
If you have a mortgage an you have not paid it off or renewed and refinanced in a while, you may consider to refinance now and take the advantage of the current borrowing market and save tens of thousands of dollars.
A great reason to refinance your mortgage – at a lower interest rate and at a great time!
Another great reason to refinance your mortgage is to reduce your interest rate to a lower rate. With rates as low as 1.8%, 1.9% variable or 2.3%-2.5% fixed, it is very easy to make significant saving for the term of your mortgage even if your current rate is already in mid to high 2’s.
Interest Rate decreased – Example calculation
For an example a $300,000 mortgage on a 5 year fixed term at a rate of 2.45% instead of 2.8% can take your payment from $1,232 to $1,177.58 per month. That is $3,300 over the period of 5 years. That may not sound much but don’t forget that paying lower interest means you are paying off your PRINCIPAL faster and that, compounded over 25-30 years over the life of your mortgage results in another $5,000-$10,000 of savings or reduces the repayment time by a few payments.
Mortgage from a trust company “B” lender vs Payment to an “A” lender
An example of someone who had to originate the mortgage from a Trust Bank may have a current rate at minimum 3.4% and higher (as high as 6-7%) and a couple of year later may qualify for a prime rate of 1.9% variable. You really should call us and check to see if you now qualify for a better rate from an “A” lender and whether we can put you in a better mortgage. You will be surprised to now that often, people that would have qualified for a prime mortgage are put into high interest mortgage because the lender knows that the borrower does not know any better!!!. Call Susie and she can tell you in a few minutes if you can save tens of thousands. If we took you from 3.4% fixed to 2.45% fixed you would save nearly $10,000 in monthly payments and additional huge saving on a compounded life of your mortgage that could total in tens of thousands of dollars.
Compounding can save you thousands of dollars
Remember COMPOUNDING makes every dollar work like its a few dollars. That is how banks made their profits :).
For final comparison, a variable 1.9% mortgage vs fixed 3.4% rate is $1093 vs $1330 per month!
Feel free to use our Mortgage calculator on our website to play with more numbers.
Do the math, what could you do with extra $300-$500 on an average $500,000 mortgage? Finance a new car? Pay some Debts? Save and Invest?