Mortgage Tips
Almost every mortgage borrower wants to pay off their mortgage as soon as possible, but not everyone knows how. Over the course of their mortgages, many people spend thousands of dollars unnecessarily by failing to take advantage of opportunities to save money.
Whether they stop or never negotiate their interest rate at maturity dates, fail to shop around, pay higher-interest or pre-payment penalties or set up the wrong payment frequency, borrowers can end up paying a mortgage for much longer than they intend.
The majority of people want to be mortgage-free as soon as possible once they purchase a home and get their mortgage. According to an article published by The Globe and Mail, one in six people refinances their mortgage each year, and most of them refinance the wrong way. Canadian Mortgage and Housing Corporation (CMHC) reports that more than half of Canadians take their mortgage debt seriously. When you combine these two things, we need to clarify the facts.
With our mortgage expertise, we can offer some very valuable tips and mortgage advice to help you achieve the notable goal of paying off your mortgage early and freeing up cash flow.
For starters...
Whenever you purchase real estate, you should always make a significant down payment. Combined with interest payments, high-ratio mortgage insurance can add many years to your mortgage. This is because the insurance premium is added to the mortgage balance and is included in the mortgage payment - you even pay interest!
Always add extra funds to your mortgage balance. If you pay a lump sum each calendar year or increase your payments, making extra payments will reduce your interest payments, decrease your mortgage balance and shorten your amortization period.
Change your payment schedule. Monthly payments are the slowest way to pay your mortgage. Most people fail to realize that cutting your payment in half and paying every two weeks can reduce your amortization period by up to five years. Consider switching to weekly, accelerated payments. The shorter the time between mortgage payments, the less accrued interest.
Do some research on both variable rate mortgages and fixed rate mortgages. Many borrowers get hung up on the fixed rate without taking the time to examine historical data that suggests the variable rate has always been cheaper and has saved the most money over time. Get expert advice while interest rates are low.
Make sure you understand and review all mortgage options available to you. Take advantage of refinancing and using a lower interest rate to get out of debt sooner while also freeing up your cash flow if you have thousands of dollars in credit card debt.
If you do not maintain an excellent credit score, you won't be able to obtain the most competitive interest rates from mortgage holders.
Whether they stop or never negotiate their interest rate at maturity dates, fail to shop around, pay higher-interest or pre-payment penalties or set up the wrong payment frequency, borrowers can end up paying a mortgage for much longer than they intend.
The majority of people want to be mortgage-free as soon as possible once they purchase a home and get their mortgage. According to an article published by The Globe and Mail, one in six people refinances their mortgage each year, and most of them refinance the wrong way. Canadian Mortgage and Housing Corporation (CMHC) reports that more than half of Canadians take their mortgage debt seriously. When you combine these two things, we need to clarify the facts.
With our mortgage expertise, we can offer some very valuable tips and mortgage advice to help you achieve the notable goal of paying off your mortgage early and freeing up cash flow.
For starters...
Whenever you purchase real estate, you should always make a significant down payment. Combined with interest payments, high-ratio mortgage insurance can add many years to your mortgage. This is because the insurance premium is added to the mortgage balance and is included in the mortgage payment - you even pay interest!
Always add extra funds to your mortgage balance. If you pay a lump sum each calendar year or increase your payments, making extra payments will reduce your interest payments, decrease your mortgage balance and shorten your amortization period.
Change your payment schedule. Monthly payments are the slowest way to pay your mortgage. Most people fail to realize that cutting your payment in half and paying every two weeks can reduce your amortization period by up to five years. Consider switching to weekly, accelerated payments. The shorter the time between mortgage payments, the less accrued interest.
Do some research on both variable rate mortgages and fixed rate mortgages. Many borrowers get hung up on the fixed rate without taking the time to examine historical data that suggests the variable rate has always been cheaper and has saved the most money over time. Get expert advice while interest rates are low.
Make sure you understand and review all mortgage options available to you. Take advantage of refinancing and using a lower interest rate to get out of debt sooner while also freeing up your cash flow if you have thousands of dollars in credit card debt.
If you do not maintain an excellent credit score, you won't be able to obtain the most competitive interest rates from mortgage holders.
