If you bought your house a few years ago and got a great low payment, but you’re starting to realize how all that interest is starting to rack up… it might be time to accelerate your payments. Here we’re going to go over everything that you need to do to make the most of the time you have left and how to save big on interest payments. Always remember the minimum interest payment is always the enemy of big mortgage savings, so you’re going to want to turn it up to 11! Let’s get started.
How Much Can You Realistically Pay?
This is a very important question to ask yourself. How much can you really budget for your mortgage payments? If you doubled or tripled your existing minimum payment, would you have to go without? You want to accelerate your payments, but you don’t want to do it to the point where you’re hungry and broke. You’re going to need to be very careful and examine every aspect of your budget each month. Take a few months if you have to, just to nail down how much you’re really spending and where you can cut to put more towards your mortgage.
Have a Conversation with Your Lender
After you know how much you can pay towards a mortgage (especially bridge mortgages), you’re going to want to talk to your lender. If you all of a sudden start paying a lot of money towards your mortgage they could become suspicious. You’ll need to be really careful to speak with them BEFORE you change your payments, so don’t forget!
Start Paying More
After you talk to your lender and you’ve figured out a realistic budget, it’s time to up your monthly payment; you can start off gradually, you can do it all at once, or you can just apply the extra from your tax return to bring down the principal – but whatever you do you need to do it! Don’t be afraid to keep paying more and more, knocking down your debt and getting on the road to being debt free.
Get Refinanced with a Broker
If you’re still having trouble with your payments even after you’ve been paying more and more, you may want to find a Canada mortgage broker to see if they can help you get refinanced. Mortgage brokers will work with different lenders to help you get a mortgage refinancing that works for you. When you get the right financing you won’t even need a bridge mortgage when you finally sell.
You’ll want to make a plan. Have a budget and stick to it, increase your payments over time and put any extra money you have towards paying off your home debt. That way you’ll be able to get things under control and have the chance to get free out under the thumb of debts.
Let us help you find the right loan, at the right rate and help you save money!