When it comes to homeownership, many of us dream of the day we will be mortgage-free. While most mortgages operate on a 25-year amortization schedule, there are some ways you can pay off your mortgage quicker!
Did you know? There are a few ways you can help pay off your mortgage faster, such as with an accelerated bi-weekly payment schedule, increasing your monthly mortgage payments to pay more to the principal, making extra payments on your mortgage, negotiating a better rate, or refinancing to a shorter amortization period!
Let’s take a look at the options and how they work:
Review Your Payment Schedules:
Taking a look at your payment schedule can be an easy way to start paying down your mortgage faster, such as moving to an accelerated bi-weekly payment schedule. While this will lead to slightly higher monthly payments, the overall result is approximately one extra payment on your mortgage per calendar year. This can reduce the total amortization by multiple years, which is an effective way to whittle down your amortization faster.
Increase Your Mortgage Payments*:
Make Extra Payments*:
Negotiate a Better Rate:
Refinance to a Shorter Amortization Period:
*These options are only available for some mortgage products. Check your mortgage package or reach out to me to ensure these options are available to you and avoid any potential penalties.
If you’re looking to pay your mortgage off quicker, don’t hesitate to call me, your Collingwood Mortgage Broker, to go over your options in more detail today!
