Concerned about the amount of interest you will pay over the period of your mortgage?

There are a number of easy techniques to save you interest $$. By making extra payments on your principle, you will greatly reduce the number of years it takes to pay off your mortgage., These ideas are just a few pointers on how to you can save loads of cash!

  1. Shorten your amortization period: Probably the most straightforward method of saving on interest. For a $100,000 mortgage at 3% interest, by reducing your amortization to 20 years, you increase your payment by only $80, and save over $9,000 in interest! Reducing to 15 years creates an additional payment of aprox $210, but saves you aprox $17,000 in interest.
  2. One-time payments: Do you often receive cash as gifts? Some people find it easier to put “extra” money against their mortgage. Tax returns are a classic example of extra money that can be used as one-time payments. By contributed $1200 annually to a $100,000 mortgage at 3%, you save $11,149.65 in interest, and reduce your mortgage by 5 years and 11 months
  3. Rounding up your monthly payments. Simple strategy that allows you the flexibility to “round-up” however you see fit, but the result is essentially the same.

Bottom Line: Any additional monies placed on the mortgage creates compounding savings, and shorten mortgage period.

Office: 905-377-8888

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