Prepayment Privileges

We could go on at length about the various features of each mortgage type but in the interest of time, our best advice is to research your options. We know the pre-payment privileges of the various financial institutions on the system. These let you pay down your mortgage faster. Also be aware that the longer the amortization period (the time it takes to pay off a mortgage), the more interest you will end up paying. Amortization periods range from five to twenty-five years.

Weekly or bi-weekly payments, instead of monthly, will shave as much as eight years and $38,000 off a $100,000 mortgage.

Another option to consider is portability. If later, you decide to sell your home and buy another, you should be able to take your mortgage with you or transfer it to the buyer of your home without penalty. This can turn out to be a major advantage if your mortgage rate is below current market rates.

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