Article Categories
» Arts & Entertainment
» Automotive
» Business
» Careers & Jobs
» Education & Reference
» Finance
» Food & Drink
» Health & Fitness
» Home & Family
» Internet & Online Businesses
» Miscellaneous
» Self Improvement
» Shopping
» Society & News
» Sports & Recreation
» Technology
» Travel & Leisure
» Writing & Speaking

  Listed Article

  Category: Articles » Finance » Mortgages » Article
 

Fast-tracking to Mortgage-free




By The House Team

Just imagine as you're going through your favourite coffee drive-thru this week that a well-dressed gentleman stops and offers you $11,000 for your medium double double. Who would hesitate? We'd take the cash. It's not so far-fetched. In fact, if you take that coffee budget and apply it to your monthly mortgage payment a mere $30 extra per month -you could save yourself about $11,000 over the life of your mortgage.

Most of us can accept the idea that we must borrow money to purchase a home. We look for the best mortgage, and then just keep doling out the money for as long as it takes to pay it off. Most Canadians choose to amortize their mortgage over 25 years. That's a long financial commitment, and it could more than double the cost of your home. But with good planning and a few smart tactics you should be able to enjoy your mortgage-burning party much earlier.

Here are a few strategies for fast-tracking your mortgage:

1. Increase your monthly payments. Rather than choosing your amortization period first, ask yourself how much you can afford each month. For example, you may feel that you can afford $1,000 per month. You're delighted when your $125,000 mortgage only demands an $800/month payment (at a 6% interest). But make a monthly payment of $1,000 instead, and you'll shave 8.75 years and almost $46,000 off your total interest cost.

2. Take advantage of lower rates. In addition to reducing the overall interest component of your mortgage, you can take the opportunity to pay down more principal faster – simply by maintaining your original payment. You should even increase your payment if you can, to reap the benefits of the cheapest mortgage money in memory. Again, you could take years and thousands of dollars off your ontario mortgage.

3. Tie mortgage payments to your pay schedule. Many Canadians are paid on a bi-weekly schedule. If you accelerate your payments to bi-weekly instead of monthly, you could improve your own cash flow and fit in an extra payment each year. That means that you're paying off principal faster leaving you with less interest to pay overall. It doesn't seem like much but like putting your coffee budget to work the bi-weekly strategy can have you mortgage free four years sooner, with almost $22,000 in savings.

4. 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. An extra $1,000 per year is a great way to fast-track to mortgage-free!

5. Consolidate your loans into a new mortgage and use the savings to boost your payments. If you're a homeowner with some equity, you can use your mortgage to consolidate your other loans: student loans, car loans, etc. Add the money you've been spending on loan payments to your mortgage payments, and you could see big savings in overall interest.

With ontario mortgage rates at historic lows, you should take the opportunity to get an expert mortgage analysis from an independent mortgage broker with access to mortgages from a wide spectrum of lenders. You've got a great opportunity to put some fast-track tactics in place. You'll remember what a good decision you made at your mortgage-burning party.
 
 
About the Author
The House Team is commited to providing quality information to help people make informed decisions about their mortgage financing needs.

Compare Ontario Mortgage Rate with the traditional banks.

Need to use a mortgage calculator? Click Here Mortgage Calculator Ontario

Article Source: http://www.simplysearch4it.com/article/48605.html
 
If you wish to add the above article to your website or newsletters then please include the "Article Source: http://www.simplysearch4it.com/article/48605.html" as shown above and make it hyperlinked.



  Some other articles by The House Team
3 Quick Tips for Creating a Garden Hideaway
Many perfectly sensible and sociable adults will confess that they had a secret, private hiding place in some garden of their childhood: a hidden corner ...

Moving With Pets
Cat-fits in the car, guinea pigs escaped at the diner, the snake that got left behind, and the dog that bit the moving man... you could fill a book with tales of the trials ...

Top 10 Tips for a Healthier Home
Kyoto Accord or not, it seems clear that Canadians are preparing to help lead the way in learning to live "green" - by adopting new habits and ideas that reduce the impact our lifestyles have ...

The Return of the Clothes Line
The old-fashioned clothes line of our grandmother's time may be due for a revival. The power blackouts of the past few ...

  
  Recent Articles
Should I Refinance My Adjustable Rate Mortgage?
by RJ Baxter

The 'New Congress' Fiddles Away Valuable Time… As The 275,000 Insurable Limit For Home Equity Conversion Mortgages (Reverse Mortgages)
by Dale Rogers

The UK Consumer's Guide to Shopping for Mortgages Online
by Mary Simone

Online remortgage quotes Are Available within Least Time
by George Cummings

Mortgage
by Ismael D. Tabije

Low Mortgage Rates
by Kuntal Mehta

Interest Only and Second mortgage rates
by Kuntal Mehta

Adjustable Rate Mortgages
by Nathen Jones

Fast-tracking to Mortgage-free
by The House Team

The Mark Is Selected…The Fix Is In…Sting Underway
by Dale Rogers

Tips to find Bad Credit Mortgage Refinance Loan.
by Gerald Bouthner

Second Mortgage loans - Is It Better Second Time Around ?
by Lee Van

Find the best mortgage deal in UK
by reethi rai

Understanding Remortgages
by reethi rai