By implementing even some of the following tips, you can shorten the length of your fixed or variable mortgage and save thousands of dollars in interest.
Increase how often you pay Increasing your payment frequency to bi-weekly or weekly can take years off your mortgage. That’s because when you increase your payment frequency, you’re making the equivalent of one extra monthly payment per year.
Increase your payments – even by a little bit Increasing your payments up to 50% of the original amount can help save you a lot. Anything over the required monthly payment goes directly to your principal, so every little bit adds up.
Make a lump sum payment if you can With VantageOne, you can make a lump sum payment of up to 20% on your mortgage once a year. That payment goes directly to your principal. Even small payments can have an impact on reducing the interest you pay over the life of your mortgage.
Renew at a lower rate but keep your payments the same Renewing your mortgage is a chance to get better terms and possibly a lower interest rate. While a lower rate means a lower monthly payment, consider keeping your payment the same. It’s a small but powerful way to get mortgage-free faster.
Consider a CreditMaster® Mortgage This all-in-one plan brings all of your personal debt under one lending umbrella. So if you have high-interest household debt or need access to cash to make renovations that will increase the equity in your home, this flexible product offers great options for getting debt – and mortgage – free, faster. Learn more here.