MORTGAGE Blog & ARTICLES
6 Easy Tips to Pay Off Your Mortgage Rewrite
Taking out a mortgage on your home may be the only way that you are able to purchase a new house, especially if you do not make millions of dollars a year. The problem with taking out a mortgage is that the lower payments that you make every month do force you to pay on your home for a longer period of time, and when you have a high interest rate, you may end up paying up to 50% more for your home than it was actually worth when you bought it. Because of this, it is important to ensure that you are paying off your mortgage as fast as you can when you get a raise or any other type of boost in income. This article will cover 6 different tips that you can use in order to pay off your mortgage at a faster rate and save the money that you not only need, but deserve.
Increase Your Rate of Payment
Although it may not be possible to increase the rate at which you pay your mortgage in the beginning, later on down the road it can be very helpful to increase the frequency of payments in order to pay off your mortgage quicker, as well as save money in the long run. This is a great option for anyone who has an increased income and can afford to pay more often.
Make Annual Lump Sum Payments
Banks offer a solution for people who are looking to pay off their mortgages at a faster rate called an annual lump sum payment. This payment can be made at the beginning of every calender year, or on the anniversary of the mortgage. This allows people to pay up to 15% on their mortgage at a time, which can shave years off of the overall mortgage payments.
Choose a Shorter Amortization Period
This method may cost more in the short run, but it will change the overall time that it takes for you to pay off your mortgage. For example, if you started out with a 25 year period, changing this period to 20 years will cost more every month, but will take quite a bit of interest off.
Round Up Payments
This method will cost more each month, but by rounding the payments that you make up, you will be able to pay slightly more every month and shave time off the mortgage payments.
Use Bonus Money Towards Your Mortgage
Any type of bonuses that you get from work, or any other unexpected money can be applied to your mortgage, and will take off interest from the overall payment.
Stay With The Times
As time progresses, there are new offers that can lower your interest and increase your payments to allow you to pay off your mortgage quicker.
- Bank of Canada
- Commercial Mortgages
- Company Updates
- Financial Planning
- First Time Home Buyers
- Home Ownership
- Housing Market
- Market Watch
- Mortgage Education
- Mortgage Products
- Mortgage Rates
- New Mortgage Broker Updates
- Notable News
- Personal Finance
- Property Investments
- Real Estate
- Refinance & Renewal Mortgages