You’ve probably heard the stories before, a couple manages to pay off their mortgage years early. But is that really possible? An article in Money Sense Magazine outlines a specific situation where a couple paid off their 25-year mortgage 10 years earlier.
Improve your credit core – If you always pay off your debts on time, your credit score should be more than fine. But unexpected surprises could come up, even from one outstanding bill. A single infraction won’t get your mortgage denied, but it can jump your interest rate.
Maximize your downpayment – putting down 20% or more for your mortgage is the biggest cost-cutting measure a borrower can make. It also helps you avoid costly CMHC insurance premiums that add dollars to your mortgage.
Shop for the best rate – this should be a no-brainer, but don’t just jump on the first rate you see. A home may be the biggest purchase you ever make, so don’t take it lightly.
Choose an appropriate amortization – if you want to pay your mortgage off sooner, you should choose the shortest possible amortization within your means.
Make your mortgage a priority – extra payments will make the biggest difference, so you’ll have to learn to budget in order to make your mortgage a priority.
If you have questions about paying down your mortgage sooner, or choosing the right mortgage in general, please feel free to contact me.
