Refinance Debt
If you’re carrying high-interest credit card debt that has caused your cash flow to slow to a trickle, you owe it to your financial future to have a conversation about how you can roll that debt into your mortgage so you can save – sometimes thousands in interest – and start building wealth.
Worried about penalties? Don’t think it can make much difference? Think again. Using today’s historically low mortgage rates, you have a golden opportunity to give yourself a tremendous financial boost. By using your home equity to consolidate your debt, you can improve monthly cash flow, have one easy payment, and be mortgage-free quicker.
Look at this example from a recent client (mortgage, car loan and credit cards totaled $225,000; we rolled that debt into a new $233,000 mortgage, which included a fee to break the existing mortgage):
Monthly Payments
| Total Debt | Current | New | |
|---|---|---|---|
| Mortgage | $175,000 | $ 969 | $1,163 |
| Car Loan | $ 25,000 | $ 495 | $ 0 |
| All Credit Cards | $ 25,000 | $ 655 | $ 0 |
| Total | $2,119 | $1,163 |
Make this the start of a new financial life. We’d love to help you crunch some numbers to see what kind of life you could be living! Talk to us about scheduling a free, no-obligation review of your situation. We guarantee you’ll be glad you did.
+4.5% current mortgage, 3.5% new mortgage. Credit cards 19.5% and car loan 7%, both 5 yr am. Subject to change. OAC. For illustration purposes only
New Purchase and Refinance Rules
As of January 1, 2018, the Office of the Superintendent of Financial Institutions (OSFI) released new guidelines for residential mortgage underwriting at all federally regulated financial institutions. If you're refinancing, rest assured that your mortgage payment will not be affected under this new rule. However, it could slow you down by making it more difficult to qualify for your refinance. You may need to wait and accumulate more equity, or look at a lower-rate variable mortgage. If that refinance is important to securing your own financial health, we encourage you to get in touch.