Saturday Oct 25, 2014

Save on your Mortgage in 3 Simple Steps [Infographic]

1 October 2011

A lot of us are always looking out to see where we can save money; whether it is saving money through groceries or bringing your own lunch to work, there is always something you can do to minimize your expenses.

What a lot of people tend to overlook is that their mortgage is a place where they can save the most.

Honestly, I am not a homeowner, and the amount of time I spend looking into mortgages and ways to save are at a minimum, but I could not refuse to look at what RateSuperMarket had to offer when they announced how you can save over $65,000 on your mortgage (a $300,000 mortgage) through their simple steps.

The Steps are the following:

Step 1: Shop before you sign with anyone

Take the time to go over what everyone has to offer before signing with anyone. A little of due diligence will take you a long way, especially when you are shopping around for mortgage rates.

Step 2: Adjust your payment schedule

You need to abandon the typical mortgage payment schedule and go for the bi-weekly rapid payments. By doing this you can save up to $19,887 in interest. Bi-weekly rapid payments allow you to pay half of your mortgage payment every other week, allowing you to make an extra mortgage payment each year.

Step 3: Make regular lump sum payments

If you are able to put down even $1,000 each year against your mortgage, you can pay yourself a total of $10,747 in interest. Now imagine what you can do with more than $1,000 each year.

By following these steps you are bound to save a lot of money on your mortgage, but in case you are doubtful, RateSuperMarket provided a great infographic examining how you can save on your mortgage:

RateSupermarket 3 Simple Steps to Save on Your Mortgage Save on your Mortgage in 3 Simple Steps [Infographic]

 

 

About the Author

Sensei

My favorite weapon of choice is the samurai sword. I use it to cut my chicken during dinner, cut my hair and periodically carve my name into stone when I am bored. I love meditating on top of a 15ft high pole and eating those sushi’s with smoked salmon on top. I love everything there is about Canada and everything financially related to Canadians. I write deily posts from Canadian Banks to Credit Card information.

Comments (2 )



Money Beagle Wrote:

Your lender will be more than happy to let you go to a bi-weekly payment plan, and will charge you handsomely for the privilege. Don’t waste your money. You can accomplish the same thing by adding on 1/12th of your monthly payment to each payment. Over the course of a year, that will work out roughly to the same benefit as the bi-weekly feature, and the best part is it’s free!

[Reply]

Sensei Reply:

I love the idea; adding a 1/12th of your monthly payment to each payments sounds like a good idea. This is definitely a good alternative if your financial institution charges you quite a bit to change payment plans.

[Reply]

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