YOU save $455.77 each month in payments…
We received a call from a couple who have their mortgage with the bank they have been dealing with all their lives.
Approximate balance owing is $420,000 and the interest rate is at 5.99%
After seeing such low rates being advertised the husband called his banker and asked if he could break his term early to get a better rate.
In order to avoid being charged the payout penalty of $9,000 the banker told him he could have a “blended rate” for a new 5 year term which meant he would get the 3 years remaining in his existing term at the 5.25%, and the additional 2 years of the new 5 year term at today’s best 5 year rate with that bank. The banker told him what a great deal it was…..
The husband thought about this “great deal” and as it was still pretty high he decided to check around and called Quickfire Mortgage Solutions!
We provided him with an amortization schedule which showed him what would happen if he simply kept the mortgage as is because he is going to have to pay for that 5.25% either way.
We then provided him with an amortization schedule at our best rate of 3.09% for a $429,000 mortgage. (mortgage principal + $9,000 payout penalty)
The difference is around $16,000, he could save almost $16,000 in 3 years! Not including the payout penalty of $9,000.
You save $455.77 each month in payments