How much can you save? Call us or apply online today for a free savings analysis!
Here's an example of a typical Debt Elimination Mortgage refinance:
Joe and Joanne Smith (names are fictious) own a property worth $290,000. They have an existing mortgage with a balance of $193,000 at 5.85% interest and have 23 years remaining on the mortgage. They currently have payments of $1,321.66 per month on their mortgage and $229 per month for their property taxes. They also have $51,600 in debt with monthly payments of an additional $874.00 per month (see table below).
The Smith's have 6,725 in income per month from two full time jobs.
The breakdown of the Smith's current debt outside of their mortgage is:
| Creditor Name |
Balance Owing |
Monthly Payment |
Interest Rate |
| Bank Loans |
$42,000.00
|
$525.00
|
8.5%
|
| Bank Credit Card |
$3,500.00
|
$105.00
|
11%
|
| Bank Line of Credit |
$4,800.00
|
$144.00
|
10.5%
|
| Retail Credit Card |
$1,300.00
|
$100.00
|
28.5%
|
| Total Unsecured Debt |
$51,600.00
|
$874.00
|
9.36% Weighted Average
|
Refinance Information:
| Existing Mortgage Balance |
$193,000.00
|
| Total Debt to be Paid from Refinance |
$51,600.00
|
| Estimated Legal Costs |
$650.00*
|
| Estimated Penalty (3 Months Interest) |
$940.88*
|
| Estimated CMHC/Genworth Fee if Loan to Value is greater than 80% |
$4,308.34**
|
| Total New Mortgage |
$246,190.88
|
| New Mortgage Interest Rate |
4.99%
|
| New Mortgage Amortization |
25 Years
|
| New Mortgage Payment |
$1,456.88
|
| *Total Cost of Refinance |
$5,899.22
|
| Net Monthly Cash Flow Savings |
$738.78
|
| Months To Recover Costs |
8
|
| Total Net Cash Flow Savings over 5 Year Term |
$44,327.03
|
In this example, the Smith's were able to refinance their debt into their first mortgage, increasing their monthly cash flow by $738.78 per month!
This reflects a total savings of $44,327.03 over the next five years!
How much can you save? Call or
apply online today for your in depth, free analysis of your potential savings.