A few weeks ago, I posted an article about one of my readers that had the potential to save $15,000 by breaking the mortgage and getting into a new 5 year fixed rate. This was a net savings. The actual savings was just over $20,000 less the penalty of $5,000.
This week, we had an even bigger savings. My clients are in a 10 yr term at 3.59%, with a $710,000 balance and 8 yrs to go. The penalty to break is $6500. The savings is $29,000. Result is a net savings of $22,500. Wow! $22,500 savings over the next 5 years! That’s $4500/ year in savings!
This type of savings opportunity is extremely rare. I’ve only seen this level of savings a few times before. We can thank the record low interest rates for that.
If you are in a mortgage with a rate that’s above 3.20%, then you could be missing an opportunity to save $$thousands. You should at least consult with a Mortgage Broker to do the math. Remember, I haven’t even listed the lower rate product options available, such as Variable rate, or a 3 year fixed rate. It’s worth looking into.
Your best interest is my only interest. I reply to all questions and I welcome your comments. Like this article? Share with a friend.
Steve Garganis 416 224 0114 firstname.lastname@example.org