I'm here to save YOU money. My name is Kristina and I want to give you the most up-to-date saving tips and ideas.

Friday, 11 January 2013

Could Your Home Equity Save Your Finances?


Hello everyone!! Happy Finance Friday!
Ive been going over something I want to write about, some important things that I really want to share with you. Being involved in finances I know a lot about the best ways to spend and the best ways to save. At this time of year its really important for people to learn how to save because they are coming out of the big holiday season where everyone spend too much ;) 

Here is a thought that I want to share with you and I hope it really helps you:

This month, next month and even into march, a lot of people will be getting credit card bills in the mail. They will realize how much they spent and even over spent during the holidays. Now most credit card rates are around 10 - 20% with some credit card rates being as high as 25%. If people end up carrying a balance on their credit card for a while, it is actually in their best interest, if the have equity in their home, to finance their home, to pay out that credit card bill. Here is why: because rather than having both a credit card bill (say a minimum payment of $400) then a mortgage payment of $900 (or more), chances are they can refinance and eliminate the credit card balance and only have 1 payment a month, the new mortgage payment. Even though, the mortgage amount would be higher, because the added credit card balance to the mortgage, changes are the new mortgage payment would be lower than the original mortgage payment. BECAUSE rates are so low, compared to when they got the mortgage. Therefore, even though its a higher mortgage amount the payment each month will be lower because of the lower mortgage interest rate. 

Does that make sense? I hope so. And I hope it helps. 

I also want to throw a little something else out there... I am located in ontario and I can work with anyone in ontario with there mortgages, BUT I can also work anywhere in CANADA! I have clients in other towns, cities, and provinces. Its not just a local thing. Its all over. So please dont hesitate to contact me if you wish to seek my help!!

Email: kcrosbie@dominionlending.ca
Phone: 613-283-8763 or Toll Free: 877-583-8763

Hope you all are having a wonderful week and an even better weekend!! 

With Love: 
Kristina Crosbie.