18 November 2010
One easy was to save $100,000 on a $250,000 mortgage
(Vancouver) - Mortgage brokers have urged consumers for years to shop around for their mortgage. Even a half percentage discount on a mortgage rate can put thousands of dollars back in their pocket over the term of their mortgage.
For example, the monthly payment for a $250, 000 mortgage at a closed 5-year rate of 3.99% and amortized over 35 years is $1, 100.53. Total interest paid over the term is $41, 168.20. Compare that to the same mortgage, but with a currently available interest rate of 3.45%. The monthly payment has now been reduced to $1,022.46. This is a saving of $6, 577 in interest over the term of the mortgage, plus an additional saving of $4, 680 in monthly payments – a total saving of $11, 257 over 5 years.
But who has the time to shop, compare and negotiate rate? “For lack of time and negotiating savvy, many people will simply renew with their current lender without investigating all their options, says Jared Dreyer, Director of The Mortgage Brokers Association of BC (MBABC) and President of VERICO Dreyer Group Mortgages. What many people don’t realize is that a mortgage broker is like an insurance broker. A licensed broker can make the whole process of shopping for a mortgage easy, fast and stress free, at no cost to the consumer”.
Dreyer continued by saying that, “mortgage brokers have the ability to shop dozens of lenders, including non-typical lenders, and they can regularly negotiate more attractive rates and terms that more closely fit the unique needs of their clients.”
MBABC’s second annual Mortgage Education Month is currently underway with a series of provincial wide seminars hosted by its member’s brokers on how to make educated mortgage decisions. The intent is to help consumers make sense of today’s complex mortgage financing market. For more information go online to MBABC or call Jared Dreyer directly at 604 649-5991
