|
Articles »
| |
|
•
| |
|
•
| |
|
•
| |
|
•
| |
|
•
| |
|
•
| |
|
•
| |
|
•
| |
|
•
| |
|
•
| |
|
•
| |
|
•
| |
|
•
| |
|
•
| |
|
Glossaries »
| |
|
•
| |
|
•
| |
|
•
| |
|
•
| |
|
•
| |
|
How you can get Low Interest Rate while using different Payment Options! Things Needed Before The Mortgage Loan Application
Payment Options
Mortgage loan required a regular equal intervals of payback period that may be specified by regular equal payment with or without any term, untill it is fully paid up the credit against the mortgage, that consist priciple amount and the interest charges. Beside a regular monthly payments there are various other payment options which are available through most of the financial institutions in Canada. You may check with the mortgage company offering these payment options in accordance to your interest and situation. There are six of the payment options you may get through are as, monthly, semi-monthly, bi-weekly, accelerated bi-weekly, weekly, and accelerated weekly payments.
Payment options is an added advantage that provide you the choice among the various options that may be fit into your financial situation, while offering savings of money and reducing your payback time, simultaneously. Although these payment options may all seem the same, but some of the payment methods such as accelerated weekly and bi-weekly payments can save you prominantly a lot in interest charges as compared with regular monthly payments.
Following table clearly illustrates how much savings in interest charges any consumer can get adopting any payment options, Although significant interest savings for the thousands of dollars in interest charges over the duration of your mortgage are only possible, if selecting the accelerated weekly or bi-weekly payment option plans in relation to other payment options. Assumption is based on a mortgage of $100,000, amortized over 25 years, with a constant interest rate of 6.45 percent.
|
|||||
|
Interest Rate Savings Through Various Payment Methods
|
|||||
|
Payment Option
|
Payment Amount
|
Frequency Annually
|
Amortization Schedule
|
Interest Payment
|
Interest Saving
|
|
Monthly
|
$665
|
12 times a year
|
25 years
|
$100,040
|
$0
|
|
Semi-monthly
|
$332
|
24 times a year
|
25 years
|
$99,770
|
$265
|
|
Bi-weekly
|
$305
|
26 times a year
|
25 years
|
$99,755
|
$285
|
|
Weekly
|
$152
|
52 times a year
|
25 years
|
$99,635
|
$405
|
|
Accelerated bi-weekly
|
$332
|
26 times a year
|
20.7 years
|
$80,435
|
$19,605
|
|
Accelerated weekly
|
$166
|
52 times a year
|
20.6 years
|
$80,200
|
$19,840
|
|
Note: Error and omission may occur. For illustration purposes, numbers in this example have been rounded off. Financial institution may calculate interest differently. The interest payment and saving was calculated over the period of amortization of the mortgage adopting various payment options.
|
|||||
|
|
|||||
|
Down Payment May Help You in Getting Your Mortgage Loan Even Having a Bad Credit w
|
|
|
Mortgage Loan Basics - Mortgage 101
|
|
|
Before Mortgage Loan Apply
|
Internet Mortgage Lead Sponsors
|
|
• Term
|
|
|
After Mortgage Loan Applied
|
|
|
• Paying Mortgage Faster
• Mortgage Refinance
|
|
|
Mortgage Loan Tips
|
|
|
• Do and Don'ts
• Rights and Liabilities
|
|
|
Other Loan Articles Regarding Your Mortgage
|
|
|
|
|
Mortgage Best Pick Online
|
|
|
|
|
|
Marketplace
|
|
|
|
|
Mortgage News RSS Feed
|
|
|
Mortgage Links Internal
|
|