| From the moment you make that first mortgage | | | | Payment options |
| payment, you will probably be dreaming of the | | | | It used to be that most people made monthly |
| daywhen you can make your last one and be | | | | mortgage payments, but weekly, bi-weekly and |
| "mortgage-free." For most people that day is pretty far | | | | semimonthly payments are more popular today. With |
| offin the future, but it is possible to speed up the | | | | these types of payment options you will reduce the |
| process. | | | | amount of principal you owe faster because you |
| Your REALTOR will be able to advise you on ways | | | | make payments on a much more frequent basisand |
| you can pay down your mortgage as quickly | | | | less interest is accrued. Many mortgages also offer |
| aspossible. This information will be helpful when you | | | | homeowners the option of making anadditional |
| are arranging financing on your home. Be sure | | | | payment each year or increasing your payment each |
| todiscuss various options with your financial institution | | | | month. Making the equivalent of oneextra payment a |
| before choosing a mortgage. | | | | year can save you a considerable amount over time. |
| Amortization schedule | | | | Anniversary date |
| One of the best ways to pay off your mortgage | | | | Many mortgages allow you to make a lump sum |
| faster is to shorten the "amortization period." | | | | payment on the anniversary date of yourmortgage. |
| Bychoosing a shorter amortization, you will not only | | | | Again this reduces the amount of money you pay |
| pay for your home in less time, but you will | | | | interest on resulting in long termsavings. It's wise to find |
| makesubstantial savings in interest too. | | | | out what "pre-payment" privileges are available on the |
| For example, the most common mortgage | | | | mortgage youchoose. |
| amortization is 25 years. By shortening that period to | | | | Your REALTOR along with either your bank, trust |
| 15years, you will erode the amount of money you owe | | | | company or mortgage broker can help you look atall |
| much more quickly and make fewer interestpayments. | | | | the possibilities for financing your home and can tailor a |
| Shortening the amortization period is not for everyone | | | | mortgage that fits your income and yourgoals. |
| as it does mean larger payments,but for many people | | | | Shop around |
| the benefit of long term savings is worth it. | | | | Look for a mortgage that has as much flexibility as |
| Usually each mortgage payment is blended and applied | | | | possible. Be sure you can make at least oneextra |
| to both the principal and interest so at thebeginning, the | | | | payment a year and can choose the payment plan |
| interest portion of the payment is extremely high. | | | | that works best for you. Your REALTOR |
| However, with each payment,more and more of is | | | | isexperienced and knowledgeable about the many |
| applied to the principal. Ask your REALTOR to give | | | | mortgage options and the types of payment |
| you examples of what yourpayments would be at the | | | | plansavailable and can act as your guide to help you |
| current interest rate amortized over 25 years as | | | | become mortgage free sooner. |
| compared to 15 years. | | | | |