Give your mortgage a gift this holiday...(are you kidding?)

Give your mortgage a gift this holiday season. It's not as "far out" as you may think. It's a gift that has reciprocity, because it gives back to you.

Here are some suggested gift ideas for your mortgage (courtesy of your favourite mortgage professional):

Give your mortgage a lower rate, it will thank you

Do I need to say it again? Mortgage interest rates are at historical lows! If you have a fixed-rate mortgage and the rate is higher than 4%, it's worth the time to investigate your options on refinancing your mortgage into a lower rate. There may be a penalty to discharge your current mortgage; however, a good mortgage professional will do an analysis for you to determine if in fact it makes sense to redo your mortgage.  When looking through the analysis the answer should be apparent, because numbers don't lie!

Increase each mortgage payment by $20

Most people don't use the regular pre-payment options that are available on their mortgage. Mortgages often have two types of pre-payment options: 1. increase your regular payments by a percentage; and, 2. a lump sum payment. For example, if  you have a $240,000 mortgage with a 25 year amortization,by increasing your regular bi-weekly payment by $20 each payment, you can shave almost 3 years off your current mortgage amortization.  Wow! It's amazing how such a small change can have a significant impact.

Get a second opinion if you think your mortgage and finances are sick

Banks are product pushers, they aren't out to help individuals financially. Although most of the marketing materials from the banks indicate they want to help people, the banks are primarily profit driven.  Don't get me wrong, I love helping people make money and I enjoy making money for myself and family. However, when that's the only motive, there will be problems.  If you find that you're under more debt than you feel comfortable and you own a home that may have equity, going to a mortgage professional for a second opinion on how to restructure your debt is a good option.

I'd love to hear your gift giving ideas about real estate.  Please call or e-mail me if you'd like to discuss your personal financial situation.

Sandra

tel: 519-763-3900 ext. 1001
e-mail: lastovic.s@mortgagecentre.com