$22,500 savings by breaking mortgage and getting into today’s low rates!

 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 steve@mortgagenow.ca