Imagine the freedom of not having to make mortgage payments for your investment property. There are advantages and disadvantages to paying off your investment property mortgage early, but if you want to do so, here are some tips to help you along the way.
Most investment property mortgage payments are due once a month, but you can make bi-weekly payments instead. By paying half of your monthly payment every two weeks, you’ll actually end up making thirteen full payments per year instead of twelve.
One of the simplest ways to pay off your mortgage is by adding to the payment each month. This doesn’t have to be a set amount; you can add more on months you have a little extra and add less or make your regular payment on leaner months.
Rounding up your monthly payments is a good way to pay a little extra. If your regular payment is $870, consider paying $900 or $1000 each month instead.
If you’ve had the mortgage for a while, look into the current mortgage investment rate. Sometimes you can refinance your loan to get a better deal if the mortgage investment rate is lower.
You may have had to take out private mortgage insurance if you borrowed money with less than a 20 percent down payment. Once you’ve paid down your mortgage balance, you may be able to cancel this insurance, so talk to your Calgary mortgage broker about your options.
A Calgary mortgage broker is a great resource if you want to make changes to your mortgage. Get the most benefit from your investment property by paying off the mortgage.
With these helpful tips you are sure to save money and be free of those monthly payments. My Mortgage Line is a Calgary based mortgage company committed to helping families succeed. We are here to help you find the best mortgage for your situation and lifestyle. Ready to get started? Apply online today, or contact our team!