Let’s talk about this—your mortgage probably is not be the only debt you have. If you are like most people, you probably also have a credit card balance and one or two consumer loans. Have you ever thought about taking equity out of your home, to pay off your other existing debts at a much lower interest rate? We analyze each individual situation to see what options you might have for debt consolidation in the Moncton area.
But while your mortgage may not be your only debt, it’s most likely the debt that is the least expensive, compared to your other debts combined.
Taking out a home equity loan allows you to combine your debts to pay them off in one monthly payment at a much lower interest rate, saving you tons of money over the years. You do not have to worry about multiple payments on different days, its all combined to one.
Let me show you what it looks like. Here is an example of how using a home loan Debt Consolidation in can help you save money each month. Feel free to give us a call, or fill out the email form on our contact page to find out what we can do for you.
Example of Debt Consolidation (before remortgaging)
| Current Situation | Balance | Payment |
| Mortgage (6.00%) | $150,000 | $959.00 |
| Unsecured Line | $10,000 | $300.00 |
| Credit Cards/Loans | $20,000 | $600.00 |
| Penalty | $2,000 | $0.00 |
| Total | $182,500 | $1,850 Monthly |
Below is a scenario after renewing your mortgage and paying off those debts.
| New Mortgage | Balance | Payment |
| Mortgage (3.64%) | $182,500 | $959 |
| Unsecured Line | Paid Off | $0.00 |
| Credit Cards/Loans | Paid Off | $0.00 |
| Penalty | Paid Off | $0.00 |
| Total | $182,500 | $959 Monthly |
The above scenarios are showing that you would save $891 per month. That means you are saving $10,692 per year. In 5 years your net saving is $53,460. Providing most of the debts are paid off! So why wouldn’t you want to make some changes to save money in the long run?
Team Jardine and our team of mortgage brokers will help you with debt consolidation in Moncton, Dieppe, Riverview and other surrounding areas.
