Do You Have a Variable Rate Mortgage? If you do, I might be able to save you money!
I have a variable rate mortgage, what do I need to know?
If the rate on your mortgage is not prime minus, then you are likely paying too much. I have worked out the numbers and have concluded that we are in a very interesting rate environment which allows you to break your current mortgage and get a new mortgage and save lots of money. Variable rate mortgage spreads are very good right now making them more attractive. In addition to all the savings you will get, the new mortgage lender wants your business so more often than not they pay for the closing costs. Anything that is not covered by the lender is usually paid for by me unless there is something extraordinary. So, it shouldn't cost you anything to move your mortgage and most of this process can be done from the comfort of your home making it super easy.
What Penalty will I have to pay to break my mortgage?
If you are currently in a variable rate mortgage right now, more often than not the penalty is 3 months simple interest. So, on a $300,000 mortgage at Prime, 3.95% the penalty would be $2,962. You do not have to pay the penalty out of your pocket as the new lender will allow you to capitalize (add) the penalty in to your new mortgage. So, for the example illustrated the new mortgage amount becomes $302,962 and you still save a lot of money.
Will I have to start over with a new mortgage?
No, all I would do is move your mortgage the way it is to a new mortgage lender. This is called a mortgage transfer. We would transfer the mortgage balance, plus the penalty along with the remaining amortization period so that you do not have to start over. The only thing that starts over is the term of the mortgage, so you end up with a new 5-year term with an awesome variable rate.
Are you paying too much? How much money can I save you on a new mortgage?
It doesn't hurt to inquire to find out. Inquires are free and I would be happy to take a look at your unique situation to figure out exactly what I can save you. In the example illustrated here we transfer a mortgage of $300,000, so it becomes $302,962. I lower the rate from 3.95% to 2.95% which in turn lowers the mortgage payments. In this example by $143.95 every month which totals $8,637 in 5 years. At the end of the 5-year term in this example the balance on the old mortgage is $260,933.82 and the balance on the new mortgage is $258,706.35, a savings of $2,227.32. At the end of the day I would be happy to work out the numbers and determine if this is a good fit for you. If it is not then nothing lost, everything gained and by that, I mean the knowledge to make an educated decision.
What are you waiting for? Call me now to find out if you can save too!!
Shawn Mooney | 403-828-1838
No comments:
Post a Comment