Everyone has goals that they would like to achieve in their lifetime. Some people want to get to a certain position at work and others want the life in the suburbs with a loving spouse, kids, and house with a white picket fence. Most of those who currently own a home are able to do so with the help of a mortgage loan and one of they're goals is to be mortgage free as soon as possible. If this sounds like you than you should read on for tips on how you can make that happen.
Let's say, you're still at the stage when you're looking at Toronto homes with a real estate company like patrickrocca.com and are already thinking about choosing a mortgage that you can pay off quickly. You should opt for a plan that allows you to make lump sum payments without any penalty. There are all sorts of different mortgage packages out there and they have their own advantages and drawbacks. From a variable to a fixed plan, you should make sure that it will work for you in the future as well as right now.
If you are able to make lump sum payments than this is a great way to pay down your mortgage all that much faster. If you ever get a bonus from work, inheritance money, or just have a little extra in your savings than you were expecting to have than you should put it towards paying off your mortgage. If you were to make a ten percent total mortgage lump sum payment every year for five years, you could save another ten percent of the total mortgage amount in reduced interest.
At one point you might find that you are able to afford more per month in mortgage payments than you are currently making. Maybe you no longer have the kids on your payroll or have received a raise at work. If this is the case than there are two options for increasing your mortgage payments. You can either increase the amount that you are paying each month or the number of payments that you make in a year. You should speak with your financial planner to decide which is right for you.
With the average mortgage, when about twenty percent of the total cost for example, is paid in a down payment, the home owner will actually end up paying two to three times the original cost of the property by the time they are mortgage free. So, you should do all that you can to pay early and reduce the amount that's going to interest.