What Are My Options?
- Increase your payment
- Simply put, you will be able to increase your monthly payment by as little as 10%, up to 100%. You can do this on your online mortgage app or over the phone with your lender
- Lock in
- With a variable rate mortgage, you will have the ability to lock in your mortgage. It’s important to remember that you will only need to lock into a fixed term that matches your current remaining term.
- Restructure into a short-term fixed product (1-3 years)
- This option will give you the peace of mind, a steady payment, and the ability to capitalize on the market if rates begin to decline within your renewal date.
- Schedule lump sum payments
- Decide on a lump sum payment you are most comfortable making monthly.
- Contact your lender and schedule that monthly lump sum payment for a specified period.
- The benefits here is that you keep the flexibility within your base payment. Your payment remains at the minimum which otherwise is helpful for future qualifications on potential investment properties or a second home.
- OR make a single lump sum and revisit things at a later date
- Consider the HELOC option
- A big benefit to the home equity line of credit is that it only requires interest payments, ultimately creating more cash flow monthly. This option would be for those who are more concerned with monthly cash flow & less concerned with paying down their principal.
- Transfer your adjustable-rate mortgage (ARM) to a static payment variable (VRM)
- While acquiring the static payment component, there is a trigger rate to ensure principal is being paid.
- Refinance
A simple refinance may benefit you for a few reasons:
- Extending your amortization out will reduce your monthly payment
- Consolidating debt can reduce your overall monthly bills
- You can access your equity for aid in payment cushion
- We can search for more favorable lenders with lower rates
- You can add a home equity line of credit
- Ride The Wave & Weather the Storm
- It’s always important to stick to your investment strategies and remember your why. What goes up has historically always come down so weathering today’s storm may pay dividends in your future.
Regardless of any decision, its vital you take a deeper look at your monthly budget & personal situation. Click here as we’ve provided our Monthly Budget Calculator to better help you understand what’s coming in and what’s going out.- https://www.boychukmortgages.ca/