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With good planning you can fast-track to a mortgage-free life. (Photo: Contributed)
With good planning you can fast-track to a mortgage-free life. (Photo: Contributed)

Fast-track to mortgage free

by - Story: 41596


Did you know that a mere $30 extra with each of your monthly mortgage payments could save you about $11,000 over the life of your mortgage?
When you add it up that’s roughly what you most Canadian spend on a cup of coffee each morning.

With good planning and a few smart tactics you can fast-track to a life that is mortgage-free. Let’s say you have a $125,000 mortgage at six per
cent interest amortized over 25 years:

  • Increase your monthly payments. If you can afford $1,000 per month but your mortgage only demands $800 per month, make a payment of $1,000 instead. You’ll shave 8.75 years and almost $46,000 off your total interest costs.

  • Take advantage of lower rates. In addition to reducing the overall interest component of your mortgage, you can pay the principal down faster.

  • Accelerate to bi-weekly payments. With more frequent payments you can fit in an extra payment each year and be mortgage free four years sooner
    with almost $22,000 in savings.

  • Use any bonuses, tax refunds or “found money” to pay down principal. This is especially valuable in the early years of your mortgage. If
    you receive an annual bonus or other lump-sum compensation, see if you can put it against the principal.

  • Consolidate your loans into a new mortgage and use the savings to boost your payments. If you’re a homeowner with some equity, use your mortgage to consolidate your other loans. Add the money you’ve been spending on loan payments to your mortgage payments to see big savings in overall interest.


  • More The Mortgage Gal articles

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    About the Author

    Tracy Head and Laurie Baird help busy families find mortgage solutions. Together they have more than 45 years of experience in the mortgage industry.

    With today’s increasingly complicated mortgage rules, Tracy and Laurie spend time getting to know the people they work with and help them to better understand the mortgage process. They support their clients before, during, and after their mortgage is in place.

    Tracy and Laurie work closely with their clients, offering advice and options. With access to more than 40 different lenders, Tracy and Laurie are able to assist with residential, commercial, and reverse mortgages in order to match the needs of their clients with the right mortgage package.

    They work closely with their clients to find the right fit, and are around to provide support for years down the road!

    Contact them at 250-862-1806 or visit http://www.okanaganmortgages.com

    Visit their blog at https://www.okanaganmortgages.com/blog

     



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    The views expressed are strictly those of the author and not necessarily those of Castanet. Castanet does not warrant the contents.

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