5 Surprising Mortgage Facts That Save You Money
No matter the time of year, or the state of your personal finances, now is the perfect time to get serious about saving money on your mortgage. So get out your notebook: here are five surprising mortgage facts that can save you money over the long term!
Fact #1: Your credit score matters even more.
Lenders are beginning to review client files prior to renewal, which means if your credit score has slipped, you may be offered a higher rate at renewal, even if you have never missed a payment. Regardless of where you are in your mortgage term, it is very important to always pay your bills on time, use only 30% of your credit limits, and monitor your credit score regularly.
Get in touch if you are interested in credit improvement tips or credit monitoring.
Fact #2: Refinancing is still one of the best ways to get debt under control and improve cash flow.
If you’re holding too much high-interest debt and you have enough equity, consolidating all of it into a low-interest mortgage can save you thousands in interest, lower your monthly payments, boost your cash flow, and eliminate the stress of multiple debt payments.
It can also improve your credit score!
Fact #3: Interest-only mortgages are once again available for those with more than 20% equity in their homes
While not for everyone, this can be a great financial strategy for those who want to minimize their mortgage payments to free up cash flow for other uses like investing, business needs, postsecondary education, maternity leave or other life situations.
Lump sum payments can be made when the time is right for principal pay down.
Fact #4: Variable mortgages are popular.
While fixed rates are higher today than they were a year ago, many lenders are offering exceptionally low rates on their variable rate mortgages. In addition to offering the ability to save on interest, a variable mortgage can be significantly less expensive if you need to get out of your mortgage later.
Fact #5: Insured mortgages get the best rates.
If your mortgage is not insured, it’s possible that you weren’t eligible for the best rates available at that time. Some uninsured mortgages can now be switched at renewal to a new lender that will offer an insurable rate, a move that could offer huge savings.
Not sure if your mortgage is insured or not? We can find that out for you.
If you have any questions about your current mortgage strategy, are thinking of refinancing, or getting closer to renewal, get in touch. We are here to help you, your family and friends understand which mortgage facts are the most important at any given time. Some good advice and a few easy tricks can reap financial rewards that last a lifetime!
Contact us or call us at 519-250-4848. If you are in the neighborhood, visit us at 3345 Dougall Ave. Windsor, Ontario (across from McDonald’s).
