Your Annual Mortgage Check-Up

There's no better time than now for your annual mortgage review! Conducting a swift mortgage check-up each year could lead to substantial financial gains.

A mortgage check-up offers a golden opportunity to assess your current situation and explore potential options. Take a close look at your existing mortgage rates and terms. Perhaps it's time to transition from a variable rate mortgage to a fixed term or to consider debt consolidation.

Your annual review is also an ideal moment to scrutinize your monthly financial position and payment frequency. Shifting to an accelerated biweekly plan, rather than a monthly one, might offer significant mortgage savings. If meeting your current monthly payment is a challenge, you can explore the option of reducing it by switching from bi-weekly to monthly payments.

Do you have extra savings you'd like to put towards your mortgage? Now is the perfect time to take advantage of your penalty-free extra payment privileges (if available). Prepayment privileges grant you the opportunity to contribute up to 20% extra per month and a total of up to 20% in lump-sum payments per year—without incurring any penalties. For instance, with a $250,000 mortgage on a 25-year amortization, a 20% monthly payment increase could yield $18,000 in savings and shave off 5 years from your mortgage. Adding an annual lump sum of $2,000 can boost your annual savings to over $25,000 and bring your mortgage-free date forward by 8 years!

Overall, your annual mortgage check-up is a valuable chance to align your mortgage with your life changes, current situation, and future goals. It ensures that your mortgage remains a financial asset that works for you, providing year-round peace of mind.

Content provided by Scott Westlake, Mortgage Agent Level 2, Dominion Lending Centres - FC Funding, License 10761. Each office independently owned & operated.

ScottWestlake.com  |  416-436-1135  |  Scott@TheWestlakeTeam.com