Did you get a mortgage within the last 4 years? If so please read carefully as you may be able to take advantage of unbelievable savings on your interest costs.
We are currently at a stage where the last time interest rates were this low was in 2004. Considering the inevitable rising of interest rates and an uncertain economic future, remortgaging is something you should definitely consider. It may be in your best interest to pay the penalty to break free from your existing high interest mortgage and consider refinancing or early renewing your mortgage at these unbelievably low interest rates. Take a look at the following example to see how these savings add up:
Example:
Original Mortgage Amount: $300,000.00
Current Interest Rate: 5.50%
Current Monthly Payments: $1,598.89
Term Remaining on Current Mortgage: 3 years
Amortization Remaining on Current Mortgage: 32 years
Approximate Penalty Payable to Break Free of Current Mortgage: $3,992.58
Approximate Interest Payable Remaining on Current Mortgage: $47,135.29
Current Mortgage Balance Including Penalty: $297,937.74
New Interest Rate: 4.39%
New Monthly Payments: $1,438.57
New Term: 5 years
Amortization: 32 years
Approximate Interest Payable over next 3 years: $38,009.25
Total Approximate Savings over next 3 years: $9,126.04
Total Approximate Savings over next 3 years after penalty: $5,133.46
As you can see in the above example you can save approximately $5,133.46 over the next 3 years even after taking into account the cost for the penalty. In today`s economy this money can go a long way. Apart from the savings two additional benefits are: 1) Per the above example, there is a decrease of your monthly payments by $160.32 per month. The difference in monthly payments can be spent any way you prefer. One tip is if you keep your monthly payments the same your savings would be even greater. 2) In the example above you would gain an extra 2 years at the new low rate of 4.39%. It is nearly impossible to predict what interest rates will be exactly in the long term. However we do expect interest rates to increase with no warning as early as September of 2009. These extra years at the low interest rate are priceless.
Fees that may be associated with this transaction are: 1) Appraisal costs which are approximately $350 (In most cases we will pick up this cost for you) 2) Legal costs approximately $450 (This cost is waived in most cases if your approved mortgage is less than 80% of your property value) 3) Mortgage insurance premium top up approximately $200 to $500 (In most cases there is no insurance premium fee if your approved mortgage is less than 80% of your property value). Considering your interest savings, the potential fees outlined are minimal.
Before you call us to inquire about your savings, first you need to see if you have the required equity in your property to take advantage of the current low interest rates. Most of you should have received your 2009 property assessment by now. Please follow these simple 2 steps to see if you are eligible to participate.
Step 1) Take your 2009 assessed value or the value you feel your property is worth and multiply it by 95%. (Example: 2009 Assesses value of $300,000 X 0.95 = $285,000) This provides you the maximum mortgage amount you can apply for.
Step 2) Take your current mortgage balance today and add 3 months payments. (Example: Monthly payments of $1,400, $1,400 X 3 = $4,200, Current Mortgage Balance $250,000, $250,000 + $4,200 = $254,200) This provides you with the amount of mortgage you would require including the approximate penalty to break out of your existing mortgage.
Results: If the number you calculated in step 1 is greater (larger) than the number you calculated in step 2 then please call us to inquire what your savings could be. If the number you calculated in step 1 is less than (smaller) than the number you calculated in step 2, then unfortunately you do not have enough equity in your property to participate. In this case you could only participate if your property value increases or if you are willing to pay the mortgage and penalty from your own resources so it is equal to or is less than the number you calculated in step 1. If your number in step 2 is only a small amount over ($5,000) than what you calculated in step 1 please call us as we still may be able to help out.
Don`t miss out! Please contact us today so we can do a detailed analysis on your individual situation. Contact Betty at 403-532-3927, e-mail bsaskiw_prolink@telus.net, Kevin at 403-589-3021, kevsas@telus.net or at our website: www.yourmortgagecontact.com.
Also please tell anyone you know that may benefit from refinancing or early renewing their mortgage as it may give you an opportunity at a chance to receive a $1,000 gift certificate of your choice. Click Here to find out further details.
Please click here if you would like to make any comments about the current or past newsletters as we appreciate any feedback. Also watch for our new and improved website in Spring of 2009.
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