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Three Quick Tips for paying down your principal sooner than later
HOW-TO Author: Caroline Lennox
NOTE - All of these tips are subject to what is in your current mortgage contract.
To set an appointment for a Mortgage Checkup with Caroline, call 800-757-0412 or text 250-415-9555 for a callback.
1. Make your payments "accelerated bi-weekly"
Although you'll have a few months per year where you have an extra payment (typically two months), these are a better bet for you than "semi-monthly".
With semi-monthly payments, you are merely splitting your monthly payment into two separate payments.
2. Set your payments slightly higher than the minimum required when you start your mortgage, even by a mere $20.
3. Increase your payment amount yearly by the maximum allowed by lender.
4. Pay down your mortgage by the maximum allowed, before you switch lenders at renewal time. Then again.
- a few weeks before you switch (if you switch), make your maximum annual prepayment with the old lender, then switch the lowered amount to the new lender.
Then, make your maximum annual pre-payment asap with the new lender.
For illustration purposes only. Consultation with the appropriate professionals (legal, financial, accounting) before you make financial decisions is advised.
E & OE
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Questions? Contact Caroline
Contact Information | Invis - Canada's Mortgage Experts |
|
| Name: |
Caroline Lennox
|
| Company: | Invis - Canada's Mortgage Experts |
| City: | Victoria |
| Province: | British Columbia |
| Country: | Canada |
| Phone: | 800-757-0412 |
| Email: | |
| Website: | http://www.clmortgages.com |
