Mortgage Examples
In order to improve the understanding of your current mortgage situation, I have provided some examples below:
Refinance Your Mortgage
To Consolidate Debt
This example shows how you can relieve your monthly debt expense by refinancing your mortgage.
|
Current Situation |
Refinanced Situation | ||||
|
Value |
Min. Monthly |
Value |
Monthly |
Monthly | |
|
Home Value |
$400,000 |
|
$400,000 |
|
|
|
Mortgage |
$250,000 |
$1,600 |
$275,000 |
$1,700 |
-$100 |
|
Visa |
$10,000 |
$300 |
|
|
$300 |
|
MC |
$10,000 |
$300 |
|
|
$300 |
|
Amex |
$5,000 |
$150 |
|
|
$150 |
|
Total Debt |
$275,000 |
$2350 |
$275,000 |
$1,700 |
$650 |
|
This table is used for example purposes only, a free analysis of your situation can be completed by contacting Kevin Mercier at 778-846-5364 or kmercier@mortgagealliance.com | |||||
To Renovate
This example helps to show how refinancing your property to renovate may be more beneficial than obtaining a loan to renovate.
|
Renovate with Separate Loan |
Renovate with Refinanced Mortgage | ||||
|
Value |
Monthly Payment |
Value |
Monthly Payment |
Savings/Month | |
|
Home Value Before |
$400,000 |
|
$400,000 |
|
|
|
Home Value After |
$470,000 |
|
$470,000 |
|
|
|
Government Tax Credit |
$1,350 |
|
$1,350 |
|
|
|
Mortgage |
$250,000 |
$1,600 |
$300,000 |
$1,800 |
-$200 |
|
Renovation Loan (5 yr.) |
$50,000 |
$1,000 |
|
|
$1,000 |
|
Total Debt |
$300,000 |
$2,600 |
$300,000 |
$1,800 |
$800 |
|
This table is used for example purposes only, a free analysis of your situation can be completed by contacting Kevin Mercier at 778-846-5364 or kmercier@mortgagealliance.com | |||||
To Save on Interest
Are you locked in a high interest rate, it might make sense to refinance and incorporate the penalty into your new mortgage.
|
Current Situation |
Refinanced Situation | ||||
|
Value |
Value |
Savings/Month | |||
|
Home Value Before |
$400,000 |
$400,000 |
| ||
|
Mortgage Value |
$300,000 |
$305,000 |
| ||
|
Mortgage Rate |
5.75% |
4.39% |
| ||
|
Remaining Term |
2 Years |
5 Years |
| ||
|
Rate at Renewal (est.) |
6.00% |
|
| ||
|
Balance after 5 Years |
$269,000 |
$253,500 |
$15,500 | ||
|
This table is used for example purposes only, a free analysis of your situation can be completed by contacting Kevin Mercier at 778-846-5364 or kmercier@mortgagealliance.com | |||||
To Invest
This example helps to show how you can refinance to invest your money, and make your interest tax deductible.
|
Current Situation |
Refinance and Invest | ||||
|
Value |
Monthly Payment |
Value |
Monthly |
Savings/Month | |
|
Home Value Before |
$400,000 |
|
$400,000 |
|
|
|
Mortgage |
$250,000 |
$1,600 |
$300,000 |
$1,800 |
-$200 |
| Investment Value |
|
$50,000 |
$300 |
$300 | |
|
Taxable Deductible Interest |
|
|
|
$230 |
$230 |
|
This table is used for example purposes only, a free analysis of your situation can be completed by contacting Kevin Mercier at 778-846-5364 or kmercier@mortgagealliance.com | |||||