Many people don’t find out about the state of their credit
until it’s too late. Whether they’ve been denied a credit card or some kind of
loan, it is usually the first time they recognize the damage they have done to
their credit score. For those people who have established bad credit, there are
still mortgage options available that can make you a homeowner in the Oakville
region. Private lenders have been offering competitive mortgage products to
people with bad credit for a number of years, helping them to become homebuyers
or improve their financial position in the event that they are refinancing.
Most homeowners are unaware of the hidden equity they are building in their
homes as they continually make their mortgage payments. As homeowners make their mortgage payments,
they begin to own more of the value of the home. As this value increases, they
become eligible to be approved for additional funds in the form of a second
mortgage or home equity line of credit, which can be accessed for all types of
necessary or emergency situations. Homeowners looking to pay off their mortgage
might be searching for the best approach.
Additional Lump Sum Payments
Many homeowners wonder if making additional lump sum payments is the right way
to go when seeking to pay off their mortgage quicker than the amortization
schedule. When is the right time to make lump sum payments? The answer is
simple: when you can. If the goal is to pay down you mortgage as quickly as
possible, it is a good idea to make a lump sum payment whenever you get the
chance. Often times, money can come to us unexpectedly, in the form of work
bonuses or birthday gifts. Save this money and apply it to your mortgage. It
won’t put any added constraints on your weekly or monthly budget, and it can
help to greatly decrease the amortization period of your mortgage. Some banks
even allow you to make an extra mortgage payment each year, which can be
applied directly to the principal. This anniversary lump sum payment is a great
way to chip away at your mortgage.
Accelerated Bi-Weekly Payments
This is a great way to not only cut down the amortization schedule on your
home, but also potentially save you a lot of money on interest as well. Instead
of paying your mortgage on a monthly basis, twelve times per year, you can
increase the frequency of these payments to every two weeks. Accelerated
bi-weekly payments are a great way to pay off your mortgage faster in a way
that doesn’t put added stress on your budget.
It is easy for people with bad credit to get discouraged about their chances of
securing a mortgage. With the help of experienced mortgage advisors, Oakville
residents have the opportunity to take advantage of competitive mortgage
products from private lenders with a history of helping people with poor credit
scores. Contact a mortgage specialist to secure a mortgage and learn more about
how you can pay off your home responsibly.