Getting hooked on a mortgage based
just on the lowest interest rate could lead to regret.
Borrowers need to look at other factors, such as pre-payment options
and penalties, if you want to pay it off early.
Accelerate your payments. If you do have the extra budget room, consider adjusting your payment plan.
For example, if you go on a bi-weekly accelerated schedule, making a
payment every 14 days, instead of twice a month, you’ll have made the
equivalent of 26 payments, by the end of the year.
Smaller, more frequent payments will reduce your interest costs and get you mortgage-free faster.
Make a lump sum payment. Say you get a bonus at work or
receive an inheritance - putting a chunk of that windfall toward your
mortgage can make a difference.
(Note: the lump sum contribution is over and above the amount you are allowed to contribute in additional bi-weekly payments.)
Reduce your amortization. Tip the scale a little bit so
that a bigger portion of your payment is going towards your principal
for that portion.
http://www.genworth.ca/homeownership/c_on-your-terms/finance_mortgage_free_faster.asp
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