Thursday, September 27, 2007

How to Become Mortgage Free quicker



You can be mortgage free sooner than you think

Are you feeling weighed down by the years remaining on your mortgage? Worried about when you should lock in your variable rate, or unsure of refinancing with rates on the rise? Getting a good interest rate is crucial, but there's a lot more you can do to ensure that you are mortgage free sooner. Flexibility and options are key - and the advice of an unbiased mortgage professional can help you make the most of these alternatives.


The experts suggest the following:


1. Match your mortgage payments with your pay periods. Not only does it make budgeting easier, but if you have bi-weekly payments you'll be making an extra payment each year (and you won't even feel it!)


2. Shorten your amortization. If you can budget for the higher monthly payments, this will help you build equity faster and take years off your mortgage.


3. Use your pre-payment option. Many people get a mortgage with this feature, but only 3% actually take advantage of it. A few hundred here and there can add up to thousands saved later on.


4. Income increasing? Consider permanently increasing your payments to match. Again, you won't feel the strain, but your equity is increasing and interest decreasing with every extra dollar you put in.


5. Most mortgages allow a lump sum payment in any one calendar year - and if you don't use it, you lose it. Just because you don't have a huge sum to put away doesn't mean it isn't worth it. Even small extra payments could pay big dividends later.


6. Shop around for better terms at renewal. Although it seems easier to just sign the form your bank sends, most people renew at rates higher than what they could have achieved if they had negotiated. Your mortgage professional is not just there for the purchase, but throughout the life of your mortgage.


Read more about becoming mortgage free quicker


Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website. Homes for Sale


Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,


Mark



A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
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