SmartHomeOwners

Stop the Stealing - Fix Your Leaky Mortgages

Do you allow your running water to drip every day from the tap at home? Probably not. As a smart homeowner, you would stop the dripping by fixing the pipe to avoid losing money every second. The same is true for your mortgages!

1. Higher Rates Steal Your Money

What annoys you is the fact that you can see, with your naked eyes, that the water is running away without a purpose. When I see that, I would tell my wife that I could hear the sounds of pennies dropping down the drain! A few drops are nothing to worry about. What about thousands of pennies a day?

What about those mortgage payments you pay every month without seeing them visually? It is exactly the same. Your money goes away on fixed days from your bank accounts without your feeling of it. There is nothing wrong to pay your mortgage payments. As a matter of fact, you have to pay to stay in your house, since your mortgage is secured on the house.

The thing that I am not happy about is that you may pay a higher interest rate than you can actually get from outside of your banks. The higher interest rate is like the dripping water – your money has gone for nothing. You pay tips for getting the service at local restaurants. However, the extra money you paid to your mortgage lenders may not even get you a “Thank You”.

2. Lower Rates Stop the Stealing

Your banks did not steal your money actually. It is you who allowed them to get your money without giving you any benefits. Let’s see an example of borrowing $200,000 for your mortgage. At today’s rates, you may get 3.99% from your bank and 3.59% from Valueland Mortgages for a five year fixed rate mortgage. The difference can be seen from the following table.

This translates into a loss of $2.12 every day when you have your mortgage with your bank. Would it be better to put your $772.78 into your children’s RESP or your own RSP for your retirement annually? Or simply get one free coffee for life!

Stop the stealing! Fix your “money dripping” to get your lowest mortgage rates from Valueland Mortgages. Your money is NOT wastewater.