Paying Off Your Mortgage Faster Is Easier Than You Think
With today’s low interest rates, you can take advantage of paying off your mortgage faster. Historically, the shorter the term the lower the interest rate, however the 5 year fixed rate mortgage carries a more attractive rate.
By refinancing your mortgage with a lower rate and not taking equity out but maintain your current payment you could save thousands of dollars over the life of your mortgage.
Use our Compare Mortgage Calculator to see how much money you can save with a shorter term and lower interest rate with the same mortgage amount. You can also use this calculator to project payments and see how they will fit into your budget.
Why You Should Choose Sunlite Mortgage
Our Mortgage Professionals are always available to answer questions and help to understand the important details of the mortgage process.
We work for you, not the lenders and will always shop the market for the lowest mortgage rate and place your mortgage with the lender that is right for you.
We are committed to ensuring that you are in the best mortgage option for your unique scenario.
Best of our services are free - there is no cost to you (*O.A.C)
Popular Loan Options to Help Payoff Your Mortgage Loan Faster
Reduce your Amortization - Pay thousands less over the life of your loan by amortizing your mortgage for 15 or even 20 years.
Accelerate your monthly payments - Pay biweekly instead of monthly.
Increase the amount of your mortgage payments - You could ask your lender to increase each payment (minimum $100.00).
If you have a variable rate mortgage you could keep the rates the same even if rates fall.
You could pay your mortgage a bonus by paying a lump sum on your mortgage every year.
Whether you are looking to lower your current monthly payment, pay off your home faster, or access the equity you have built up in your home; it is important to consider a few factors before refinancing your mortgage loan. Are rates lower now than when you purchased your home or last refinanced? Do you have enough equity built up in your home now to open up new options?
How long do you plan on staying in your current home? Would breaking the mortgage and pay the penalty to get a lower mortgage rate save me from paying more in interest? Speaking with a Sunlite Mortgage Professional today can help you understand your best options.
You’ll own your home free-and-clear sooner, and the more quickly you pay off your loan the less interest you owe in the process. If you would like to retire mortgage-free or own your home outright by the time your kids are off to university, then a shorter term loan can help you reach these goals.
Also bear this in mind, if you if your mortgage interest rate is 3.49% and you prepay your mortgage on your principal residence by $10,000.00, your return on that prepayment is 3.49% tax free since there are no taxes on the growth of your principal residence. You can always access it through a Home Equity Line of Credit without a penalty.
By shortening your term, more often than not your monthly payment will be increasing. Additionally, prepayment penalties owed to your current loan need to be weighed when considering refinancing your mortgage loan.