If your mortgage is coming up for renewal from a 5 year term, you may be a bit shocked by the increase in your new payments. On average, rates have gone up approximatley 1%.
Sounds small however 1% on a $250,000 mortgage can be an increase to your new mortgage payment of $300.00 a month or more. It's nothing to sneeze about. Don't get too worried yet. There are some thigngs you can do. 1. Consider consolidating all your debt into your mortgage to average down your overall interest costs. 2. You may want to think about extending your amortization - this will keep your mortgage payments the same if you are on a tight budget. 3. If you've been thinking about doing some home renovations or making a large purchase, now may be the time to add the funds to your mortgage. A line of credit is a great and flexible product to add to a mortgage. 4. Use the services of an independant mortgage broker to shop your mortgage to many lenders to ensure you get the lowest possible rate.
