New Upcycle Ideas 842
1 day ago
Thursday, February 5, 2009
we have been tossing around adding some (or all) of our car loan, consolidation loan, and LOC into our mortgage. i have been reading what gail has to say about the subject and yes we understand that we would have to make extra payments and that WE ACQUIRE NO NEW DEBT.
i spoke with our mortgage broker this evening on the phone and she verbally quoted me 4.39% for 5 years fixed amortized for 35 years. right now we are 5.24% on a 5 year fixed over 40 years.
she is going to send the application off and get back to me when it is returned. a large part of this depends on what CMHC values our home at.
i did some calculations from this mortgage calculator and have come up with these possibilities:
possibility 1 - add in all of the debt
mortgage - 145K with accelerated bi-weekly payments of $336.42
if the mortgage was 145K that would wipe out all of our debt allowing us to make extra payments.
total interest paid when loan is finished 29.41 years later -112K
possibility 2 - add in practically all of the debt
mortgage - 140K with accelerated bi-weekly payments of $324.82
if the mortgage was 140K we would just be left with the LOC still allowing us to make extra payments.
total interest paid when loan is finished 29.41 years later - 108K
possibility 3 - add in about half of the debt
mortgage - 130K with accelerated bi-weekly payments of $301.62
if the mortgage was 130K we would still have 1 of our large loans left to pay (consolidation loan i'm thinking because it has the lower interest rate)
total interest paid when loan is finished 29.41 years later - 100K
possibility 4 - stay the same as we are now
mortgage - started at 103700 with bi-weekly payments of 236.64
debt repayments of about 800/month
total interest paid in *gulp* 40 years - 141K
we also have to consider paying lawyers fees...again and paying CMHC fees...again. & there is the 3 months interest penalty. is there anything else you need to pay for? S thinks we will have to pay more because we initially did 100% financing on the house...anyone know if this is true?
what is everyone's take on refinancing and adding debt into your mortgage? be brutally honest.
& also FIXED vs VARIABLE. i'm so terribly confused about this.
Subscribe to:
Post Comments (Atom)
2 comments:
I'm far from an expert but I believe you can't get a variable mortgage until you've paid off 25% of the value of your house (or maybe the insurance fees are too high or something).
In your situation I'd take option #1 with the plan of making extra payments every 3 months. Choose a 20/20 mortgage, so you can repay up to 20% of the mortgage every year and aim to do so. It's amazing how even a small extra payment saves SO much interest and shaves months off your mortage.
Good luck with your decision. That kind of rate break is really someting to look at. If you can swing the payments in #1, I agree that this is where you should go.
Post a Comment