1 December 2010
In the end, you’ll save money on interest rates due to more frequent payments and also paying $1,000 more each year.
• It’s always necessary to know about and use the prepayment privileges.
Many mortgage lenders will allow you prepay a certain amount every year even without penalty. Moreover, some of them also allow you make larger mortgage payments from time to time.
• When the renewal time comes, don’t hurry – shop around to see if your mortgage is still good enough for you.
Pay attention to the interest rate, term, prepayment privileges and so on.
It’s quite a good time to increase your mortgage payment to the highest possible amount (of course, you have to know you can afford it). In addition to it, try to increase your payment frequency to save in interest charges. And remember: when you change lenders, always make sure you understand all the conditions and requirements of your new mortgage.