Do you need a Personalized Paydown
Plan for your holiday bills?
Most
Canadians suffer with their highest personal debt load in January, when the
“holiday hit” arrives and your credit card statements let you know just how
much you spent on the festive season. It’s especially hard if you already had a
burgeoning debt load before the holidays. That’s why it’s the perfect time to talk about
a Personalized Paydown Plan.
With
the right plan in place, this year could be the beginning of a strong new
financial life. Start now, and every month you could be seeing the difference:
a boost to your monthly cash flow, one easy payment, faster debt paydown, and
potentially thousands of dollars in interest savings.
If
you have enough equity in your home (you can’t refinance a mortgage above an 80 per cent loan to
value), we can show you how to use that equity to roll your
high-interest debt into a low-rate mortgage. First
we’ll do an assessment of your situation.
Here’s an example – mortgage, car
loan and credit cards total $225,000. Roll that debt into a new $233,000
mortgage, including a fee to break the existing mortgage, and look at the
payoff:
Current NEW
Today
Monthly Payments* Monthly Payment*
Mortgage
$175,000 $969 $1,163
Car loan
$ 25,000 $495 $
0
All credit cards $
25,000 $655 $
0
Total $2,119 $1,163
*4.5% current mortgage, 3.5% new mortgage,
25 year am. Credit cards 19.5% and car loan 7%, both at 5 year am. OAC. Subject
to change. For illustration purposes only.
That’s $956 less
each month! Now decide how to use that $956. If you put $500 into your mortgage
payment, you’ll reduce your amortization from 25 years to 15. Or you could
invest in RRSPs or RESPs and reap some tax benefits. Consider putting some
funds aside each month into a “December” fund – so you never have the financial
pain of the “holiday hit” again!
It’s a new year. Make it 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, something to really celebrate about next New Year’s Eve!
Mortgage Agent
michelle@4dfinancial.com
519-675-8798
http://mortgageintelligence.ca/brokers/Michelle-Natareno
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