After you buy your new house in Edmonton, it's time to set up a plan to pay the mortgage every month. Sometimes you need a little help with the best plan of attack. Here are a few tips for better mortgage repayment.
If you have not started shopping for a home yet, you want to receive a pre-approval first. The last thing you want to do is start shopping for a home, find one you love and find out you can't get the mortgage you need to purchase the home. Pre-approval will help you understand what you can afford and make it much easier to start shopping.
Most mortgages are set up with monthly a payment, which means you will pay 12 times per year. However, if you pay half your mortgage payment on a bi-weekly basis, you will actually make 13 payments a year. This one little trick can help you cut years off your mortgage and save money.
Pay Double Once a Year
Another way to shed the years off your mortgage is to pick a month and pay double. If you receive an annual bonus or there's a month you will get paid three times instead of just two, choose to pay a double mortgage payment instead of using the money for something else.
Most mortgage payments don't work out to an even number. However, you can make your mortgage payment easier to manage and pay extra by rounding it up. For example, if you're payment is $848.34, you can just pay $900 a month. This will help you pay it off sooner and gives you an easier number to fit into your monthly budget.
Get a Loan With a Good Interest Rate
The interest rate on your home loan will affect how much money you must pay monthly. If your interest rate is high, the monthly payment will also be high. The lower the interest rate, the better. The interest rate you're eligible for will depend on factors like what kind of loan you're getting, and how long you'll take to pay back the loan. The longer the loan term, the higher the interest rate.
You may also be able to get a better interest rate by shopping around for the right lender. If you're a home buyer who is thinking about purchasing a home in the future, contact a lender to get more information.
By using these tips, you can pay your mortgage off sooner and save thousands of dollars in interest.