• Robert Floris CFP, AMP
    Lead Mortgage Agent
    M08004919
    905-574-9200 Ext. 215

  • AMORTIZATION: How To Accelerate Your Mortgage

  • amortizationMortgage Killer: Amortization

    We consider the below to be our

    MOST IMPORTANT MORTGAGE INFORMATION STATEMENT OF THE YEAR.

    If your goal is to pay off the mortgage more quickly then please read on.

    In the next several months you will be receiving your annual statement. Here is what to look for:

    YOUR REMAINING AMORTIZATION.

    How much time is left on the mortgage? This is the amortization period. Ask yourself; does it fulfill your goals? If the answer is no, here are some ways to speed up the payment process thereby reducing the amortization:

    1. Accelerate your payments: simply change the payments to biweekly or weekly accelerated.
    2. 2. Increase your mortgage payments by $50-$100 per month per year. By increasing the payment, the number of years to pay off the mortgage drops.
    3. Can I put a lump sum amount on my mortgage? Adding just $1000 extra to your mortgage combined with accelerated payments will reduce the interest paid.

    Many homeowners put all the emphasis on the mortgage rate but it’s actually the amortization period that is the killer. The interest paid will be influenced more by the length of time that it takes to pay off the mortgage than the rate. Of course, it is nice to have a low rate and a low amortization in an ideal world but if you cannot influence the rate, focus on something you can change. Accelerate the payments, increase the payment amounts and utilize the prepayment privileges to make lump sum payments. All of these strategies will reduce the amortization and save you thousands in the long run.

    The bottom line is:

    WORK THE MORTGAGE IF POSSIBLE

    FOCUS ON THE AMORTIZATION

    Robert Floris is a Mortgage Broker. His office is located at 651 Fennell Avenue East in Hamilton, Ontario. If you would like to speak with Robert, he can be reached at 905-574-9200 #215. Alternatively, you can contact Robert here.

    If you would like to apply for a mortgage online, please follow this link.

    If you would like to see our Google reviews or leave one yourself, you can do so here.

    Thanks for reading!

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