Kelowna Mortgages: Refinancing

There are many reasons to look at refinancing your mortgage. Perhaps you have lived in your home for some time and would like to make some much needed home improvements. Maybe you have taken on a large amount of debt from loans and credit cards, and would like to use your home equity to help balance your books. Or maybe you feel that the interest rate on your mortgage is a little too high.

No matter what your reason for refinancing, the experts at The Mortgage Centre – BC Direct Mortgages have the experience to help you realize your financial goals.

Home Improvement Financing

If you are looking to make some home improvements, you can often build the renovation budget into your mortgage. This usually results in lower payments than servicing both a home improvement loan and a home mortgage, with a better overall interest rate. Upgrading your house increases its value, and can result in higher home equity as well. Your home is your biggest investment – looking after it makes good financial sense.

Debt Consolidation

Making payments on numerous credit cards and loans can be challenging, and can keep you from reaching financial freedom. Mortgage renewal time is a good chance to do a financial check-up, and see what can be done to improve your financial health. We can often help you to consolidate your debt into your mortgage, resulting in reduced monthly payments and, over time, a better credit rating as well.

Interest Rate Adjustment

Interest rates fluctuate with the markets, your debt load, and your personal credit score. The rate you paid in your previous term may not necessarily reflect your current financial situation. We can help to review your current rate and terms, and make sure you are using the product best suited for you.

Below is an example of how refinancing your existing mortgage can help you lower your monthly payments, by reducing the interest rate and extending the amortization.

Extending the mortgage amortization can be a practical way to reduce your monthly payments. With pre-payment privileges of up to 20% in any year, the overall amortization can be reduced over time, while still allowing for a lower monthly payment.

In this example, we have used a Kelowna adjustable rate mortgage (also known as a variable rate). A Kelowna adjustable mortgage will fluctuate with the Prime rate, so your payments will go up and down with Prime. If you are more comfortable with a steady payment, a fixed rate may be better suited to you.

Please note that this is an example for illustration purposes only! The rate and/or terms are subject to change without notice.

Existing Situation:

Existing First Mortgage $100,000 (Current rate is 4.00%, 20 years remaining-no penalty)
Existing Second Mortgage Line of Credit $50,000 (at Prime 4.00%)
Existing Consumer Credit Card Debt $20,000 (at varying rates from 9%-20%)
Existing Total Monthly Payments $1,370.92

With Our Help:

New First Mortgage to Consolidate Debt $170,000
New Adjustable Mortgage Payment $715.03 (Prime (3.00%), 30 year amortization)
Monthly Payment Savings $655.89 per month savings!