Want to pay of your mortgage sooner? You are not alone. Most Canadians dream of paying down their current mortgage but don’t know some tricks to get you there.
Of Course, choosing to be mortgage-free sooner is easier said than done but MortgageTailors.com has some tips to get you there.
*Make more Mortgage Payments.
Option 1: Paying your mortgage biweekly or weekly saves interest as well as you are making 2 extra mortgage payments a year. This goes directly to principal.
Option 2: If making monthly mortgage payments of $1000, why not pay 2 payments of $500. Say the 1st and the 15th. You save on interest by making part of your monthly payment early.
* Round up mortgage payments – every dollar counts. If your mortgage payment is 6$87 bi-weekly, why not set the payment to $700.00 biweekly. You won’t even notice the difference; however, it will impact your mortgage balance over time.
*When interest rates drop, continue to make the same mortgage payment, less of the payment will go to interest and more to principal.
*Choose a shorter amortization period: A 15 year over a 20 or 25 yr. amortization will increase your regular mortgage payments but also save you thousands in interest costs.
* Tax Refund. Put the tax refund or a portion of it directly onto your mortgage. Not spending money, you weren’t expecting will not affect your lifestyle but will impact your balance on your mortgage. This really impacts how long it takes to pay it off.
*Refinancing: If you hold high interest debt (i.e. credit cards) or vehicle loans combining them into a low mortgage payment can save you money in interest as well as monthly payments.
Want to learn our Sweet 16* Program to pay off your mortgage in 16 years, become a MortgageTailors client today. Call Eva Neufeld at (780) 244-0505 or email to email@example.com