A large number of homeowners get weighed down by the number of years left on their mortgage. The historically low interest rates have been a boon as many individuals who, once upon a time were tenants, have now become homeowners. Getting low interest rates is crucial, but there is a lot more you can do to ensure you can become mortgage free even sooner.
Here are some great tips to do this:
- If you shorten your amortization period, you can build equity faster and take years
off your mortgage. So if possible, budget for higher monthly payments.
- Make bi-weekly payments that match with your pay periods. This will increase the number of payments made in the year and take years off your mortgage term.
- Many mortgages allow a lump sum payment in any one calendar year, and if you don’t use it, you will lose it! Even if you don’t have a sizeable amount to contribute, make sure you make that extra payment, no matter how small, as this could pay huge dividends later.
- If your salary increases, increase your mortgage payments to match. You probably wont feel the strain, unless you budget for a big ticket item such as a car or a boat with your extra salary. Remember your equity is increasing and interest decreasing with every extra dollar you put into your mortgage.
- When it is time to renew your mortgage, make sure you shop around for a better term. You may think that you get a favorable rate just because you are an existing customer of the bank or institution, but that’s not always the case. Make sure you negotiate and shop around.
Through our affiliation with various Financial Institutions, you can access a full range of financial options for your home. Get the mortgage that’s right for you with the best rates and start saving money.
Complete and submit this form. A Mortgage Specialist will contact you at your convenience.