Considering Breaking Your Mortgage for Lower Rates? 🏡💸

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Below is an example of a client who was trying to determine if there was any benefit to breaking his current mortgage to take advantage of today's lower rates. Here are the details:

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Current Mortgage Details: 📊

• Balance: $300,000

• Rate: 5.50% (5-year term with a 25-year amortization period)

• Monthly Payments (Principal and Interest): $1,831.17

• Balance Remaining at End of Term: $267,562.82

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New Mortgage Details: 📈

• Balance: $310,000 (including $10,000 in penalties)

• Rate: 3.09% (5-year term with a 25-year amortization period)

• Monthly Payments (Principal and Interest): $1,481.41 (a difference of $349.76)

• Balance Remaining at End of Term: $265,428.15 (interest savings of $33,120.27)

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Savings with Increased Payments: 💡💰 If you use my strategy of increasing your payments, you can save even more money. By increasing the payment by 20%, the new payment would be $1,777.69, which is still less than what was paid before. With this increased payment, the balance at the end of the term would be $246,240.71, and you would be left with 19 years and 7 months for the total amortization period.

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Contact Me Today! 📞

If you're considering breaking your mortgage to benefit from lower rates, let's discuss your options. Contact me for further details and inquiries. I'm here to help you navigate your mortgage options and find the best solution for your financial situation.