Paying your mortgage off the traditional way takes 25 to 40 years and costs about TWICE the purchase price of your home. Here are some effective ways to pay off your mortgage sooner, build equity faster and save thousands in interest.
- Change your payments. Simply increasing your payment frequency to bi-weekly or weekly costs nothing and can save thousands of dollars over the entire life of your mortgage. If you can afford to pay a little extra, consider accelerated bi-weekly or weekly payments—these are equivalent to making one extra monthly payment per year which results in substantial savings. Or you can make a lump sum payment which can realize savings several times as great over the life of your mortgage.
- All-in-One Mortgage (AIO). Instead of making extra payments, consider switching to a mortgage that pays off the principal faster without costing you anything more. All-in-one mortgages combine a line-of-credit mortgage with a chequing account to reduce interest costs and pay off your mortgage in as little as half the time, without changing your spending habits. You deposit your pay into the all-in-one account and pay bills as you normally would. While you’re not using your money, it’s used to reduce your daily loan balance. Over the life of the loan, this can save hundreds of thousands of dollars in interest!
- Maid to Measure Mortgage. Here is an opportunity to split your mortgage up to 3 times to take advantage of interest rates. Unsure of Fixed or Variable for the next 5 years? Why not do both? How about a fixed 1yr, 3yr and an AIO? You diversify your investment portfolio so why not your mortgage? Don’t get caught locked in with a 5yr fix when rates are going down no more.
To help you decide which of these options is the best way for you and become mortgage-free sooner, call Kevin Pickle today for a free analysis at 519-999-7526 or firstname.lastname@example.org. We can help with some of the costs. Don’t delay call TODAY!