Wednesday, 20 March 2013

Tips for Paying Off Your Mortgage Faster


Tips For Paying Off Your Mortgage Faster
For most homeowners, paying off their mortgage quickly – so that they own their home free and clear – is a top priority. Paying down additional principal during the first years by a variety of means can shorten the mortgage — and dramatically lower the amount of interest you will end up paying over the life of the financing. Here are a few ways to make this happen:
  • Consider making lump sum prepayments. Most lenders will allow you to do this on the anniversary date of the mortgage.
  • Use your tax refund to make mortgage prepayments. Instead of spending your tax return, invest it in your financial future by putting it toward your mortgage.
  • Consider making bi-weekly or weekly mortgage payments. This strategy can add the equivalent of another monthly payment each year, which can add up over the life of the mortgage.
  • Round up your payments. Even a few extra dollars each month can amount to significant savings over the long term.
  • Increase the amount of your payments when your income rises. The trick here is to keep your lifestyle generally at the same level as before, while concentrating on debt reduction.
  • Ensure that your payments are as large as you can afford. Try tracking where your discretionary income goes each month – you may find room to increase your regular mortgage payment, or make a lump sum prepayment.
  • For some variable rate mortgages, keep your payments the same size when rates go down. This allows you to put the savings associated with a lower rate towards the goal of principal reduction.
Explore your Options with Mortgage Intelligence Online Calculators
I would be happy to discuss your individual mortgage strategy. As a supplement to my consultation with you, there are also a range of helpful calculators on the mortgageintelligence.ca website which allow homebuyers and homeowners to explore different mortgage scenarios. In particular, the Mortgage Payoff, Bi-Weekly Payment, Mortgage Analyzer and Debt Payment Accelerator calculators can help you understand the financial benefits of paying down your mortgage as quickly as possible. In addition, the home budget calculator can help you to track your spending patterns in order to increase your mortgage payments.

 

Kevin & Faye Kitzman

Sales Representatives

Remax Real Estate Centre

Direct : 519-577-0603



 


 

Faye Kitzman

Mortgage Agent

Mortgage Intelligence

519-588-0141


M08003930

 

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