In February we started the process to remortgage our home to consolidate our debt. Today is our closing date and now we are consumer DEBT FREE! As I had recently decided to stay home with our 2 small children, we needed to lower our monthly debtload. Last year we bought a new vehicle and have been living somewhat beyond our limited means, so our line of credit was growing. Since the bank mortgage interest rates dropped dramatically, we decided to take advantage. We managed to get a mortgage rate at 4.72%; a whole percentage below our prior rate. When you remortgage before your maturity date, you pay a penalty. Our penalty is $1300, but we save about $5000 in 5 years, and potentially more if we can take some of the money we save monthly and drop it on our mortgage- yeah, well worth the penalty! We added $30000 to our mortgage and are paying roughly the same monthly payment with only extending our mortgage by 1 year, and our other debt is gone. That is easy on the brain and wallet!
Use this neat calculator from First Credit Mortgages to see how much you could be saving if you choose to do the same!
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