Articles on Mortgages All Articles
Four Ways to Pay Down Your Mortgage Sooner
HOW-TO Author: Carol Dorn, AMP
Four Ways to Pay Down Your Mortgage Sooner
Here are four ways to save money on what is likely to be your biggest lifetime purchase.
1. Use Your Tax Refund
Most Lenders allow homeowners to make a penalty free prepayment of 15-25% of the original mortgage principal each year. If you receive a tax refund, this is a great way to use it. Additional Payments take years off the amortization of your mortgage, saving you thousands of dollars in interest.
2. Index Your Payments To Your Income
If you get a raise at work, switch to a higher paying job, or reduce your household expenses, consider directing that extra cash flow to your mortgage. Even small amounts make a big difference over time.
3. Accelerate Your Schedule
If you are currently paying monthly, consider switching to accelerated biweekly or weekly payments. This strategy produces the equivalent of one extra monthly payment each year. This powerful strategy can knock four years off of a 25 year repayment schedule and reduce the total interest cost by almost one-fifth.
4. Renew Smart
When your mortgage comes up for renewal, you have the opportunity to pay down as much of the principal as you want without incurring a penalty.
Carol Dorn, AMP - Mortgage Mama Saving You Money
Contact Information | The Mortgage Centre Express Mortgage Services |
|
| Name: |
Carol Dorn, AMP
|
| Company: | The Mortgage Centre Express Mortgage Services |
| City: | Kelowna |
| Province: | British Columbia |
| Country: | Canada |
| Phone: | 250-808-5521 |
| Email: | |
| Website: | http://www.mortgagemama.ca/ |
