Right now there are a lot of mortgages coming up for renewal from 5 years ago. These mortgages are coming up with past mortgages of rates over 5% and with 35 and sometimes even 40 year amortizations. Mortgage rates have never been as low as they are right now. Sure we have said that time and time again, but like times before, we mean it. There are 5 year mortgages out there with a rate of 2.84%.
If you have a mortgage renewing right now and you started off as a $300,000 mortgage on a 5 year term with a rate of 5.20%, amortized over a 30 year term your current mortgage payments would be sitting roughly around $1637. With this same mortgage assuming that you stuck with a monthly payment and did not take advantage of any lump sum payments you had access to, your mortgage amount on renewal would be $276,050. Not bad, almost $24,000 off your principle.
Now lets take a look at your renewal.
If you renew your $276,050 mortgage at a 5 year term of 2.99% and keep your same remaining amortization of 25 years you are dropping your monthly payment from $1637 to $1305 per month. That is a saving of $332 per month – That’s a car payment!
Are you still comfortable with that $1637 per month payment? That is even better. How about dropping your amortization and owning your home sooner? You can keep that same mortgage payment and instead of renewing your mortgage for 25 years, you can drop your mortgage down to just under 19 years. That just saved you over 6 years of payments of at least $1300, That’s equal to over $93,000!
Take advantage of today’s rates. Call or email me for information and to find out your mortgage options.
Scott Bourke, AMP
Dominion Lending Centres Regional Mortgage Group
866-343-1125 Toll Free
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