Mortgage Amortization Template

There is no need to say that mortgage is the largest financial commitment you will ever have, and most probably you spend a lifetime trying to pay it off. It gives you a lot of sense to pay off your mortgage faster either you are a first time home buyer or just refinancing your home as well as takes you out of the risk. It reduces the number of years you make your payment and translates your payments into big savings. Following are the few tips which will guide you how to reduce the amount of interest you pay on your mortgage.

Your Best Mortgage Terms

One needs to increase one’s monthly mortgage payments in order to get a better mortgage deal right at the beginning that gives one a competitive interest rate. What is more, it allows someone to make a lot of principal payments devoid of any penalty. You are going to tell your mortgage lender/broker that you want to pay off your mortgage as early as possible. You will further let them know for the mortgage product that is going to be successful and help you do just that.

How to Shorten Your Loan Amortization

Canada has a twenty-five year standard loan amortization. However, repayment process can be increased or decreased depending upon your financial situations. The shorter the process the earlier you will come out of the debt. This way your total interest payment of the mortgage will significantly go down. Even though your monthly payments will be higher, but it is worth doing if you can have the funds for it.

Utilization of Your Prepayment Privilege

There are a number of mortgage contracts that allow you to prepay portion ranging from 10% to 25% every calendar year of the original mortgage balance devoid of any penalty. But the people who take privilege of it, are in a few numbers. If you pay your mortgage annually it will definitely reduce your total interest as well as will shorten the life of your mortgage.

Bi-weekly Payments And Their Acceleration

You will have to pay thirteen monthly payments in one year by making half monthly payments every two weeks. As far as the extra one month is concerned, your payment will directly go to reducing your principal so reducing the life of the loan. You can pay off your twenty-five year loan in twenty-one years by simply doing accelerated bi-weekly payments.

 Using Mortgage Amortization Template for Help

Without any doubt, you can have your hands with the following Mortgage Amortization Template, it can save  you a lot of your time. Here is preview of this Excel Template,

Mortgage Amortization Template

Here is download link,

Download Mortgage Amortization Template 

Putting Down More Money

It is needless to say that as you come up with the higher down payment, your mortgage amount, mortgage default insurance as well as interest will be lower. It depends on you how you pay the CMHC default insurance premium. Usually, it ranges from 0.5% to 3.1% of the loan amount. It is then added to the mortgage which once more will translate into more interest. If your payment is round about 25% after that you do not need this insurance.

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