Important Changes to Mortgage Qualification Coming October 17th, 2016
Today’s fixed rate mortgage interest rates offer a tremendous opportunity for Albertan home owners to reduce their monthly mortgage payment obligation(s) by refinancing their existing home mortgage(s). Even just 2 years ago, mortgage interest rates averaged over 0.5% higher than rates offered by most financial institutions today, meaning that even after paying a payout penalty, most homeowners will actually be able to save money by refinancing, and getting themselves a lower rate. And for homeowners with a little extra equity, today’s low mortgage rates offer an excellent opportunity to consolidate credit card, and other higher interest debt into their mortgage. Converting even $10,000 in credit card debt at 18% into $10,000 in mortgage debt at 2.69% can make a tremendous difference in cost –not to mention the simplicity of having just one mortgage payment, as compared to 2 or 3 credit card payments on top of your regular mortgage payment.
In uncertain economic times it is important to minimize monthly expenditures, one of which could be a mortgage payment. By reducing their mortgage interest rate, mortgage borrowers can save in two ways: first, a lower mortgage interest rate and lower monthly payment mean home owners can have more money in the bank to save or spend; secondly, with a lower mortgage interest rate mortgage borrowers can reduce the principal portion of their mortgage faster –and become mortgage free sooner!
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