Mississauga Townhouse Mortgage Tips
If you're planning on purchasing a townhouse in Mississauga in the near future here are a few mortgage tips that can help you save a lot of money on your home. When you consider that even a small difference in an interest rate or putting a little bit of extra money back into your mortgage can end up saving you thousands of dollars, you'll realize how important it is to understand your mortgage.
Here are a few of the most important mortgage tips that you absolutely need to know.
1. Extra payments can really add up quickly
Sometimes in life it's the little things that can really count and it's the same with a mortgage. You'd be quite surprised to see how much small payments can add up to big savings. It's important to look for a mortgage that provides options for privilege payments so that you can make these extra payments without having to pay a fee. These privilege payments should also be flexible so that you can make larger or smaller payments as extra money pops up.
2. Biweekly payments
With most mortgages you'll have the option of making biweekly instead of monthly payments on your mortgage. Some home loans even give you the option to pay on a weekly basis. If you take a look at a mortgage calculator you'll see what an amazing difference this can make during the term of your loan. In some cases you'll be able to pay off your debt at least four years earlier.
3. The bigger the better when it comes to the down payment
The bigger the down payment you can make, the less interest you'll have to pay over the mortgage term. As well, you can reduce or completely eliminate the CMHC fees by making larger down payments. If you're able to scrape up 25% of the total Mississauga home price as a down payment this fee can be completely avoided.
4. Work with a mortgage broker
Mortgages can be terribly confusing - especially for first-time buyers. When you work with a mortgage broker you’ll be able to get all of your questions answered by a third-party that is only interested in your best interests. He’ll be able to explain all of the different types of mortgages and which one he would recommend according to your own personal circumstances.
When you're looking at the various Mississauga townhouses you’ll want to be fully informed about your mortgage options. There are two steps to finding the perfect townhouse including shopping around for one and then financing it. When both of these are carefully done you'll end up with the townhouse that you really want and love and you'll also end up saving a lot of money in the process.