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Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: pudding on June 05, 2019, 10:40:37 AM

Title: How to best approach this mortgage and line of credit, can you offer opinion ?
Post by: pudding on June 05, 2019, 10:40:37 AM

I'm not someone who deals with these kinds of numbers very often. Maybe someone out there is a broker or deals with this often and can easily give an educated opinion. If so it's much appreciated.

I'm in Vancouver, Canada.

I have a house and I live on the middle and top floor with 3 international students. The house has a legal 3 bedroom suite downstairs which is rented out. Total rents are $3,350 a month.

House may be rezoned in next 3 to 5 years and if so I'll sell for a good amount.

I recently had to do quite a few upgrades to the house to bring it up to code in order to get city to authorize the basement suite. It's all done now, new electrical panel, roof, fire alarms and smoke detectors, water heater, landscaped, pretty much all is good.

Over the 11 years I've owned it I've had to do quite the song and dance to make everything work.   

But now all the upgrades are done, city off my back and house is all painted and fixed up I'm thinking it likely will be much more simple and straightforward from here on.

This got me to thinking about my mortgage and lines of credit, thinking would it be better to try to roll them into one new mortgage etc... So I called the credit union (who I have my mortgage from now) and this is what they said... Any relies appreciated;






Hi Pudding,

Please see below:

The interest rate of both your $61,000 and $120,000 Creditline Mortgages is 4.45%  (PRIME + 0.50% with PRIME at 3.95% currently and subject to change anytime)

-       For the $61,000 Crediltine, you are approximately paying $223.11 on interest-only monthly

-       For the $120,0000, if you maximize the full amount, you are approximately paying $438.90 monthly,  interest-only

For the term mortgage, you are paying $2,755.35 monthly

 

Here are your options:

1)     We can Blend and Extend your existing Term and combine your Credit line Mortgages into it. This will secure you a good interest rate for the next 4 years

The best rate for a 4 YR Fixed is 3.24% right now however, if we do a Blend and Extend, you can get the 4 YR Fixed at 3.15%

I can leave $25,000 Credit line Mortgage open (minimum) and combine only your $61,000 Credit line Mortgage and $95,000 Credit line Mortgage  = $156,000 + term mortgage of $685,699.53

Total: $841,699.53

For $841,699.53 at 3.15% over 30 years, your monthly payment will be $3,608.00

 

2)     We can leave the term mortgage alone and renew closer to maturity date, this means that you can still have 2.79% until 30 April 2020

We can combine your 2 Creditline Mortgages into a 4 YR Term at 3.24%, leaving you with $25,000 Creditline Mortgage

New Term amount: $156,000

Amortization: 30 years

Monthly Payment: $676.00

 

Let me know

 

Thanks and regards,

Title: Re: How to best approach this mortgage and line of credit, can you offer opinion ?
Post by: SwordGuy on June 05, 2019, 01:59:35 PM

I'm not sure I understand.  You are currently on interest only loans?