Be mortgage-free faster

Think your house is comfortable now? Imagine walking through the door knowing that you never need to make a mortgage payment again. In addition to the satisfaction of being mortgage free, paying off your mortgage faster can save you money by reducing the interest you pay.

Here are a few  strategies that can help you pay off your mortgage faster:

Strategy #1: Increase the frequency of payments

• Take advantage of biweekly or weekly payment options rather than monthly payments.

Strategy #2: Take advantage of increased payment options

• Pay more with each installment. Some banks allow customers to increase their payments by up to 100% of their regular payment amount at any time throughout the term of the mortgage. Even increasing by 10% can make a big difference over time.

Strategy #3: Take advantage of lump–sum payments

• Most banks offer the opportunity to make lump–sum payments on your mortgage. Check with your mortgage provider about the maximum lump–sum payment you can make. It may be up to 20% of the original borrowed amount
each year.

Strategy #4: Choose a shorter amortization period

• Most mortgages are amortized over a 25-30 year period, meaning that's how long it will take for your combination of principal and interest payments to pay off the outstanding balance. A shorter amortization period may dramatically reduce the amount of interest you pay over the shortened life of your mortgage.

Strategy #5: Do it all! Take advantage of flexible features

• Investigate the mortgage options offered by your bank. Then check with a Mortgage Broker to see if they can find a more flexible mortgage. Flexible mortgage payment features can provide you with peace of mind and more control in the event you need to reduce your payments.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.

More The Mortgage Gal articles

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 www.okanaganmortgages.com

Visit their blog at www.okanaganmortgages.com/blog


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

Previous Stories