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Pay off your mortgage faster-ag

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          HowcanI payoff mymortage
                                 faster?
    It's smart to speedup the process.If you         afford to, reduce your schedulefrom z5 to
    have a z5-yearmortgage for $3oo,oooat an         15 years. Your biweekly payments would
    averagerate of 5.75 per cent, you'll pay         then increaseto sr,r4o (still using our sample
            in
    $z6z,5oo interest.Here aresix ways to pay        mortgage above), resulting in savings of
    offyour mortgagein record time.                  $116,6oo that should build a verv healthv
                                                     retirement savings nd.
                                                                        fu
     1.Buywhatyou afford
                can
    Even if you re pre-approvedfor a big mort-                 your
                                                     5. Cetebrate anniversary
    gage,look for a lessexpensivehome. You'll        Majorbanks and lending institutions allow
    sav€en interest and wont have to rely on         you to pay at leastan additional ro per cenr
    your line of credit to make ends meet. Never     oI yorrr mortgageon your mortgageanniver-
    let your combined debts (mortgage, car            sary date,so evenifyou do nothing else,use
    loan, studentloan, credit cards,etc.)exceed      your tax refund to top up your paymenrs.
    4o per cent ofyour grossincome.                  The averagetax filer receivedabout $r,roo
                                                     last year-if you did nothing but apply that
    2.Geta mortgage
                  broker                             to the sample mortgage every year, youd
    Yes,your bank should rep^y yovr loyalty          own your home eight months early and save
    with its bestrates,but that isn t going to fly   about$3o,4oo.
    with its shareholders.A mortgagebroker
    will shop around to ger you the best rate        6.Tryanopenrate
    available,and you don t haveto pay for their     Once youve paid offat leastz5 per cent of
    servicesif your mortgage is with a major         the value ofyour home, considera variable-
    lender (brokers Nepaidbybanks and credit         rate rnortgage, which changes with the
    unions, but are still impartial). You'll save    prime lending rare. You're exposed to the
    about halfa per cent over postedrates.On         risk ofhigher rares,but ..r.ur.h hu, shown
    the mortgagementioned above,you'd save           you will still savesignificantly.
    more than $z6,ooo interesrover 25vears.
                       in                               Youmaynotbe ableto afford anyor all of
    Check the Yellow Pages your prJrri.rcial
                             or                      thesestrategies  right now-or your current
    mortgage  brokersassociation.                    mortgageagreementmay not be ableto ac-
                                                     commodate them. But add them ro your
         more
    3. Pay   often                                   financial to-do list and implemer,, ,h.-
    Payyour mortgage every two weeks rather          when you can.You'llbe "fre.i ,oo.r"r.
    than monthly. Thke our sample mortgage:if
    you divide the monthly payment of$r,875in                         FinanciaIexpert
    halfand make a payment of $938every two                           LoriBamber spentmore
                                                                                has
    weeks, your morrgage will disappear four                          than16years hetpingCanadi-
z   yearsearlier- savingyou $48,ooo.                                  anstakecareoftheir money.
i
I
o
z

m
             your
    4. Shorten schedule
    You can achieve a similar effecr by shorten-
I   ing yoqr amortiza:J'onschedule. If you can




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posted:5/17/2013
language:Norwegian (Nynorsk)
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