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Mortgage brief…Is it worth changing your mortgage today?

Fixed rate mortgageMortgage rates have never been lower.  Should you break your current mortgage to take advantage of the lower rates?   The answer is ‘yes’ and ‘no’.

YES….if the penalty to break your mortgage is less than the potential savings.  We are seeing many opportunities today where it PAYS to break your mortgage and get into today’s lower rates.

EXAMPLE for one client..  Existing mortgage is $275,000.  The existing rate is 2.99% with 3 years to go.  The penalty to exit is $3500.  The current 3 year rate is 2.24%.  Gross savings is $5602.  Net savings is $2102.

NO… if the penalty to break your mortgage is less than the potential savings.   EXAMPLE..  Penalty is $6500 and Gross savings is $5602.  Net loss is $898.

YES… if you think interest rates are going to be much higher in the next few years, you may still want to bite the bullet, pay the penalty and lock into a longer term fixed rate mortgage.   Everyone is different and has different needs, risk tolerances, plans.  This is a personal choice.

I’ve seen examples of both situations.  You could save money by breaking your mortgage.  The best advice is to speak with an experienced Mortgage Broker. Get an UNBIASED opinion.

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

 

Is there a better mortgage rate out there?

where to invest You’re 2 years into your mortgage term.  You got a great rate… or so you thought…? But now you aren’t sure.   So much talk about record low interest rates…  You begin to question..  Maybe there’s a better deal out there?   Did you choose the right product and Lender?  Has your mortgage advisor or broker contacted you during those two years?  Does this sound familiar?

We’ve all heard of buyer’s remorse….    That’s when you make a purchase, only to regret spending the money days or weeks later.    I’m seeing a lot of people second guessing their mortgage decision recently.   And I have news for you… RELAX! There is a way to check to and see if you made the right choice, and better still, there is a way to see if you can do better today. Continue reading “Is there a better mortgage rate out there?”

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