Tips for Paying Down Your Mortgage in Edmonton
If you are a homeowner in Edmonton, here are some tips to enable you to increase your equity position more rapidly:
1. Increase the frequency of your regular mortgage payments. By repaying your mortgage according to an accelerated bi-weekly plan [where once a year, you make an extra 2 week payment], a 25 year mortgage is paid out in less than 20 years, saving you thousands of dollars in interest.
2. Increase your mortgage payment by $15 [or more] every two weeks and you will be pleasantly surprised to learn how much interest you will save over time! If your circumstances change, most lenders will allow you to revert to the original amount.
3. Once a year [perhaps when your income tax refund cheque comes back], make a substantial cash payment and it will go directly against your remaining principal. More equity, less interest payable! It makes perfect sense.
Why make the bank’s bottom line look better when you can dramatically improve your personal financial picture by taking a few simple steps along the way?
