# Refinance Calculator

Looking for more information about mortgage refinancing in Edmonton? Use our free online mortgage refiance calculator and see how much you could potentially save by refinancing your home. Anytime you can save interest, it helps not only free up monthly cash but also saves a ton of money in interest payments. So by eliminating high credit card interest at 18 – 24% and combining it with your current mortgage into one low payment makes sense.

We just helped this client a few weeks ago:

Current mortgage balance: \$300,000
Interest rate: 3.49% 5 years, 2 years left in his term
Penalty to break the mortgage early: \$4,600
23-year amortization, payments of \$1,578.48 per month.

He was also carrying 3 credit cards with balance of \$2,000, \$5,000 and \$16,000, with min payments of \$60, \$150, and \$420 respectively.
Making just the minimum payment it would take 30 years to pay off which means about 90% of these payment goes towards interest.
As well he had a \$15,000 line of credit at 6% interest = \$75 per month interest payment.

So when we looked at his numbers:

Over the next 2 years, he pays \$20,180 interest and \$17,673.22 principal on his mortgage.

Over the next 2 years, he pays about \$13,608 interest and \$1,512 principal on his credit cards

Over the next 2 years, he pays \$1,800 interest and \$0 principal on the line of credit.

(The credit card numbers are close but not exact, as he slowly pays down the credit cards he pays a bit less interest)
Total over the next 2 years: \$35,588 Interest and \$19,185.22 principal

And his total monthly payments are: \$2,283.48
We refinanced his mortgage into a 2.59% 5 year fixed rate. The new mortgage includes the penalty, the credit cards and the line of credit.

Scenario #1: Keeping his new mortgage payments the same as he is currently paying, reduces the amortization on his mortgage to 15 years and 1 month.

This means over the next 2 years he pays \$16,685.97 interest and \$38,172.99 Principal.

We have to account for the penalty on his mortgage of \$4,600. This means in 2 years he is \$14,387.77 ahead after the penalty!
Scenario #2: Wants to reduce his payments but keep the principal amount being paid down the same.

We reduced the amortization to 22 years which dropped his payments to \$1,701.38 per month.
And now over the next 2 years, he pays \$17,046.71 interest and \$23,762.89 Principal less the penalty of \$4,600, which means \$19,162.89 principal paid.

He saves \$582.10 per month or \$13,970.40 over the next 2 years!
Scenario #3: Wants to reduce his monthly payments by as much as possible.

We increased his amortization to 30 years which dropped his payments to \$1,367.28 per month.

Over the next 2 years he pays \$17,252.41 interest and \$15,543.47 principal – the penalty of \$4,600 = \$10,943.47 principal paid.
He saves \$916.20 per month or \$21,988.80 over the next 2 years on his payments!

Mortgage Tailors are your local Edmonton mortgage brokers. We help with Edmonton refinancing and securing the best Edmonton mortgage rates. Try our