This case study shows a quick calculation of how a mortgage refinance can help you consolidate your debts at a lower interest rate and free up more cash OR simply help you pay off your mortgage quicker.
House Purchased in 2008 for $230,000 at a 4.9% fixed rate
Note: These figures are fictional and used for illustrative purposes. Please contact me to calculate savings in your particular circumstances.
After consolidating debt and re-financing at today’s 5-year FIXED rate:
Client frees up $781 per month (payment of $1,025 per month vs. $1,806) and
Has $10,000 cash in hand to purchase a new vehicle, perform renovations, manage Christmas expenses, etc.
Alternately, if this home-owner had re-financed and continued to make their $1,806 monthly payment:
They’d pay off $14,500 in principal per year – that’s an amazing $73,000 in 5 years!!!
And these samples include any penalty fees you’d pay for breaking your mortgage early!!!
If you’re like most Canadians, it seems like your bills just keep increasing while your income stays the same. You make your payments on time but you’re noticing less money left over at the end of each month.
On the other hand, maybe you have no problems making your current debt payments but it seems like you’re just not paying them down quick enough. Each year you look at your mortgage statement and are shocked by the little amount of principal you’ve actually paid!
Click here to contact me today and let me calculate how I can help you reach your goals faster!