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Cut years off of your mortgage

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Paying off your mortgage can seem like a daunting task. While statistically, most Canadians are putting extra money own every month, here is a gentle reminder about how a little bit can go a long way when it comes to mortgages.

On a $250,000 mortgage here are a few scenarios that can help you cut years off your mortgage:

·         Switching to bi-weekly or weekly payments. You could cut almost 3 years off of your amortization by simply switching to accelerated bi-weekly or weekly payments.
·         Round up the bi-weekly payments.  The original payment would be roughly $617 so if you rounded that up to $650, you could cut off 4.5 years.
·         Increase your monthly payments. Monthly payments simply work better for some people. If you were to round up your roughly $1234 payment to $1300 a month, you could still cut off 2 years.

We are still in an environment of extremely low rates. Now is a great time to not only pay down your mortgage as fast as you can, but increase your payments so that when mortgage rates go back up, you are comfortable with the higher monthly payments.

I know the example has been grossly overused but if you imagine cutting out one specialty coffee a day and putting that money towards your mortgage, how many years it would save you in mortgage payments.

For a complimentary mortgage review or for any mortgage questions at all, please feel free to contact me today.
 
http://www.christinebuemann.com
 
*For a 5 year fixed rate of 3.39% over 25 years. Figures provided are approximate. 
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Location: 1596 3rd Avenue, Prince George, BC V2L 3G4, Canada

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