I know there are a lot of people out there that are pretty comfortable with their mortgage. The banks send you a renewal notice and it’s easy to just keep making the payments. Most people don’t even check the rate to make sure it’s competitive. The last renewal I had, the bank sent me a notice saying their ‘competitive’ rate was 4%. At the time, 3.19% was the going rate. I’m glad a checked! What if I told you that even 0.1% makes a huge difference? Check out the coles notes below:
The difference between 2.14% and 2.25% (0.11%) on your interest rate will save you over $2500 on an average priced single family detached home ($502,200) and $1,400 on an average priced condo ($273,800) over a 5 year term. That is a nice trip away in the winter.
The difference on 0.25% on your interest rate will save you $5,900 on an average priced detached home and $3,200 on an average priced condo over a 5 year term.
Isn’t that worth checking your rate when it comes times to renew? Changing over your mortgage is fairly easy these days.
- Have a conversation with a mortgage broker. It doesn’t cost you anything.
- Sign some documents. Provide your bank account info.
- Save some money.
Sometimes the savings on the rate difference will make it worthwhile to break your mortgage and refinance. If you are close to renewal or would like a bit more information about rates and your options, give Josh Higgelke with Axiom Mortgages a call (403)461-5719. He is a guy that I know and trust to do great work.
As always, if you have any questions, don’t hesitate to get in touch with me. I would be happy to help you with your real estate needs!