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Is Now the Time to Refinance? A Winning Strategy

With rates still at record lows, now is the perfect time to refinance your mortgage. With a quick call, Dreyer Group Mortgages can determine if refinancing is the right solution for you. We work with lenders across the country to find you the absolute best mortgage rate available. You can take advantage of historically low rates in a variety of ways:

Refinance your existing mortgage at a lower rate; even if you’re in a locked in rate, it may be worth paying the penalty – a simple calculation will determine the savings.

Home Improvements – upgrade, refinish, additions, painting, flooring, install energy saving systems, new appliances, roof repair, improve electrical or plumbing…have we got you thinking?

Restructure Debt – reduce high credit card debts and soaring credit interest rates.

Access Equity – to finance investments, large purchases or child’s education. Dreyer Group Mortgages can work out all the mathematics and assess if refinancing your mortgage is your best option. We negotiate, on your behalf, with the top lenders across the country.

Don’t Wait For Lower Rates

Refinancing becomes cost-effective when current interest rates are lower than your current mortgage rate. For example, if your current mortgage is $300,000, at 4.25% (5 year term), with 25 years remaining, now would be a good time to refinance at a new 5 year rate of 3.19%. Not only would benefit from a savings of approximately $168 a month, but also you would save another $11,000.00 in interest costs over the 5 year term. This strategy is lowering your interest rate and saving you potentially thousands of dollars over the life of your mortgage.

Less is More

By switching to a lower interest rate, reducing your 25-year amortization to 15 or 20 years, or increasing your mortgage payment, you can build up the equity in your home sooner, as more of your payment is applied to principle reduction. This strategy is referred to as switching or changing the term of your mortgage to accrue equity more quickly.

Example: Effect of increasing monthly mortgage payment by $150.00

Mortgage $350,000.00 @ 3.19% 5yr fixed over 25 year amortization (rate subject to change)

Initial Mortgage

$350,000.00

$350,000.00

Monthly Payment

$1690.67

$1840.67

Remaining amortization

20 years

16.5 years

 

By choosing to pay an extra $150 a month on the mortgage, your mortgage balance at the end of 5 years will have been reduced by an additional $28,650.86 and the remaining amortization will be 6.5 years. This translates into significant savings over the life of the mortgage.

Apply Now in 30 Seconds or call today and our team can look at all of your options and help you make a great decision!

Mortgage Broker Services Surrey 604 536-3802
Mortgage Broker Services Canada 1-800-687-9020

An Example of a CURRENT CLIENT SCENARIO

NEW & IMPROVED SITUATION

BALANCE

PAYMENT

 

BALANCE

PAYMENT

Mortgage (4.5% interest rate)

$250,000

$1315

Mortgage (3.19% interest rate)**

$293,000

$1415

Auto Loan 8%

$19,500

$450

Auto Loan

Paid Off

--

Department Store Credit Card 21%

$4,500

$155

Department Store Credit Card

Paid Off

--

Unsecured Line of Credit 8.25%

$7,500

$225

Line of Credit

Paid Off

--

Visa Card 18%

$6,500

$195

Visa Card

Paid Off

--

Penalty to Break Mortgage – if any

$5000

 

Penalty to Break Mortgage

Paid Off

--

Total Balance & Payments

$293,000

$2340

Total Balance & Payments

$293,000

$1415

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