AGENT LICENSE ID
10505
BROKERAGE LICENSE ID
10505
Lou Salvino
President
Office:
Phone:
Address:
7500 Martin Grove Road, Unit 7, 2nd Floor, Vaughan, Ontario
Resolution #1: Pay Down Mortgage!
11/21/2011
With the holiday season approaching, it's wise to focus on bigger goals, especially if doing so will help you prevent overspending on gifts and non-essentials. Instead of focusing on shopping for the upcoming holidays before your goals for 2012, why not reverse the order and set your priorities now?
For example, if your goal is to pay off your mortgage sooner, consider these suggestions:
1. INCREASE THE FREQUENCY OF YOUR PAYMENTS. Let's calculate how much you could save by paying biweekly instead of monthly. You could reduce the term of your loan and save hundreds of dollars in annual interest costs!
2. DECREASE THE AMORTIZATION OF YOUR LOAN. If you can afford higher payments, choose a shorter amortization period and pay substantially less interest over the duration of the loan.
3. PAY AS MUCH AS YOU CAN for your down payment and your monthly payments. Don't pay more that you can comfortably afford. However, if interest rates decrease when it's time to renew your mortgage, for instance, then keep your mortgage payments the same, allowing more money to go directly to your principal.
4. USE EXTRA MONEY FOR AN ANNUAL LUMP SUM PAYMENT. Expecting an end-of-year bonus? Why not apply any "windfalls" that you receive directly to your principal to help pay off your mortgage faster and reduce your annual interest costs?
Please feel free to contact us for other simple but practical mortgage-smart tips.
For example, if your goal is to pay off your mortgage sooner, consider these suggestions:
1. INCREASE THE FREQUENCY OF YOUR PAYMENTS. Let's calculate how much you could save by paying biweekly instead of monthly. You could reduce the term of your loan and save hundreds of dollars in annual interest costs!
2. DECREASE THE AMORTIZATION OF YOUR LOAN. If you can afford higher payments, choose a shorter amortization period and pay substantially less interest over the duration of the loan.
3. PAY AS MUCH AS YOU CAN for your down payment and your monthly payments. Don't pay more that you can comfortably afford. However, if interest rates decrease when it's time to renew your mortgage, for instance, then keep your mortgage payments the same, allowing more money to go directly to your principal.
4. USE EXTRA MONEY FOR AN ANNUAL LUMP SUM PAYMENT. Expecting an end-of-year bonus? Why not apply any "windfalls" that you receive directly to your principal to help pay off your mortgage faster and reduce your annual interest costs?
Please feel free to contact us for other simple but practical mortgage-smart tips.
