![]() Or, with today's higher rates and prices, you may find that you need the extra budget room and want to bring your payments back down to monthly, and put the cash towards other expenses. But once that happens, it can be a great feeling to know that you're on a faster road to a shorter mortgage. Often, when a mortgage payment schedule is bumped up from a monthly one, it takes a few months to adjust to the increase. ![]() Or some clients base their payment schedules on how often they receive a paycheque (i.e. Not everyone can squeeze that extra room out of their budget on a regular basis. The one that works best for you, of course. A True North Mortgage broker can help you unearth your mortgage fine print if you have questions. If you have a restricted mortgage, your options to change your payment may be even more limited or not available at all, or will incur higher costs than you expected. Other lenders may allow changes under certain conditions or for a fee. At THINK Financial, our in-house lender, there's no cost or fee to change your payment schedule. It depends on your lender and mortgage fine print. Does it cost money to change your payment frequency? What does 'accelerated' actually mean?Īn accelerated payment means that an extra month has been factored into your payment schedule, to give a slight bump-up in payments that turns into a more significant bump-down in interest costs over time. ![]() Putting money down sooner and more often reduces your principal faster, incurring less interest. Time is the engine that fires up your mortgage-interest charges. Why does increasing your payment frequency save you interest? By the time your 25th year comes around, most of your payment is principal instead of interest. As the years go by, your principal is paid down and gets smaller. In the beginning, most of your payment goes towards interest because your principal is at the maximum amount. A mortgage payment is a blend of interest and principal designed to be paid on a regular schedule to pay off your loan over a period of time (your amortization), usually 25 years.
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