Reflections for your Mortgage

1. Change your Payment Frequency

Changing your payments to weekly or biweekly accelerated will take a few years off of your mortgage.

2. Increase your Mortgage Payment

YEAR ONE

Mortgage Amount

$400,000

Rate

2.991%

Amortization

25 Years

Payment (P + I)

$1890

YEAR TWO

Mortgage Amount

$389,047

Rate

2.99%

Amortization

24 Years

Payment (P + I)

$2000

Balance After Year One

$389,047

In year two, all we did was increase the payment from $1890 a month to $2000 a month and the new amortization dropped from 24 years to 22 years, 3 months.

SAVINGS: $1890 per month x 21 months = $39,690

Again, amortization is more important than the rate on your mortgage.

3. Pre-Pay with a Lump Sum Payment

Pre-pay with a lump sum payment. Given the exact example from above, if we placed $1000 at the end of each mortgage year, the amortization shaved an additional two years off the above example.

4. Consider your Household Debt

Consider whether or not your family household has too much debt. If yes, question whether it is a smart idea to refinance. The easy answer is yes, if it saves your family money.

5. Consider your Household Income

You may find yourself in a position where your hands are tied, your household income is so tight and you cannot do anything about it. (At least you gave it some thought).

TO CONCLUDE:

Spend 10-15 minutes and think if your financial life can improve. Be selfish. If you have any questions, call our team as we also care about your financial well-being.