Save this PDF as:

Size: px
Start display at page:

## Transcription

1 ABCs of Mortgages Series Paying Off your Mortgage Faster Smart mortgage decisions start here

4 Ways to pay off your mortgage faster 1. Increase the amount of your payments One of the ways to pay off your mortgage faster is to increase the amount of your regular payments. Normally, once you increase your payments, you will not be allowed to lower your payments until the end of the term. Check your mortgage agreement or contact your mortgage lender for your payment options. Example John is getting a mortgage of \$150,000, amortized over 25 years, with a fixed interest rate of 5.45% for 5 years. The mortgage lender tells him that that he must pay at least \$911 a month. He is trying to decide if paying \$50 more a month will help him save money. Assumptions The interest rate of 5.45% remains the same over the 25-year mortgage. Total payments over the life of the mortgage Monthly payment at \$911 Monthly payment at \$961 Principal \$150,000 \$150,000 Interest payments \$123,368 \$108,859 Total amount paid \$273,368 \$258,859 Interest savings \$14,509 Years to pay off By paying an extra \$50 a month over the life of the mortgage, John would save over \$14,000 and pay off the mortgage two and a half years sooner.

5 2. If you renew with a lower rate, keep the monthly payments the same At the end of your mortgage term, when you renew or renegotiate your mortgage, you may be able to obtain a lower interest rate. Although you would have the option of reducing the amount of your regular payments, you can take advantage of this situation to pay off your mortgage faster. Simply keeping the amount of your payments the same will make you mortgage-free sooner. Example Stefanie used to pay \$1,000 each month on a \$150,000 mortgage. When she renewed her mortgage after five years, the interest rate had decreased by one percent, from 6.45% to 5.45%. While the lower interest rate would have reduced Stefanie s monthly payments to \$924, Stefanie decided to keep the monthly payment at \$1,000 in order to reduce the total amount of interest she will pay over the term of the mortgage. Details Stefanie is renewing her mortgage after five years for another five-year term. The remaining mortgage principal amount is \$135,593. Assumptions The new interest rate of 5.45% would remain the same for the rest of the mortgage. 3

6 Keeping the same payments while renewing at lower interest rates (over the life of a 20-year mortgage at 5.45%) Monthly payments at \$924 (new minimum payment) at \$1,000 (maintaining previous payment) Principal \$135,593 \$135,593 Interest payments \$86,228 \$73,916 Total amount paid \$221,821 \$209,509 Interest savings \$12,313 Years to pay off By keeping the monthly payments at \$1,000 per month with the lower interest rate for the rest of her mortgage, Stefanie will save over \$12,000 and will pay off the mortgage two and a half years sooner. 4

7 3. Choose an accelerated option for your mortgage payment You can spend approximately the same amount of money on your mortgage each month and still save money by choosing an accelerated option for making your payments. Most financial institutions offer a number of payment frequency options: Less frequent More frequent monthly semi-monthly biweekly accelerated biweekly weekly, and accelerated weekly Accelerated payment options Accelerated weekly and accelerated biweekly payments can save you thousands, or even tens of thousands in interest charges, because you ll pay off your mortgage much faster using these options. The reason is that you make the equivalent of one extra monthly payment per year. Standard payment options The standard payment options are monthly semi-monthly biweekly weekly. For these four payment options, there is no difference in the total amount you will pay over a year. This means that there is very little extra savings if you switch from a monthly payment option to one of the other standard payment options. 5

8 Example: Impact of changing the payment frequency The table below shows the payment frequency options offered to John by his lender, their impact on his mortgage payments and how much he can save over the amortization period. Mortgage details Mortgage principal of \$150,000 amortized over 25 years Interest rate of 6.45% for the entire amortization period Payment frequency Number of payments per year Payment amount Total payments per year Interest saved on mortgage Less frequent Monthly 12 \$1,000 \$12,000 More frequent Semi-monthly (twice a month) Biweekly (every two weeks) Accelerated Biweekly 24 \$500 (\$1,000 2) 26 \$462 ( \$1,000 x 12 ) \$500 (\$1,000 2) Weekly 52 \$231 ( \$1,000 x 12 ) 52 Accelerated weekly 52 \$250 (\$1,000 4) \$12,000 \$162 \$12,012 \$174 \$13,000 \$29,407 \$12,012 \$249 \$13,000 \$29,751 Note: This example assumes a mortgage of \$150,000, amortized over 25 years, with a constant interest rate of 6.45%. By choosing an accelerated payment frequency, John makes the equivalent of one extra monthly payment a year. John will pay off his mortgage over four years sooner and will save over \$29,000 in interest over the amortization period. 6

10 Example John received a raise which allowed him to save \$15,000. He decides to use it to make a prepayment on his mortgage at the beginning of the second year of his term. However, his mortgage lender limits prepayments to a maximum of 10% of the principal. John wants to know whether he can make that large a prepayment, and if so, how much sooner he will be able to pay off his mortgage as a result. Details Mortgage of \$150,000, amortized over 25 years Lump-sum payment limit: 10% of principal allowed once a year Assumptions Interest rate will be 5.45% for the entire 25-year mortgage Calculation of the maximum prepayment allowed Original mortgage: \$150,000 Limit allowed by John s mortgage lender: x 10% Allowed lump sum payment: = \$15,000 John will be able to use his raise to make a \$15,000 in lump-sum payment, since he is allowed to prepay up to \$15,000 each year. Over the mortgage period No prepayment Prepayment (beginning of second year) Prepayment lump sum \$15,000 Principal \$150,000 \$150,000 Interest payments \$123,368 \$90,168 Total amount paid \$273,368 \$240,168 Interest savings \$33,200 Years to pay off Making the prepayment will reduce the amount of interest John will have to pay over the life of the mortgage by over \$33,000, and he will be able to pay off the mortgage over four years sooner. 8

12 Glossary Accelerated bi-weekly A payment frequency that allows you to pay half the monthly payment every two weeks. Since there are 52 weeks in a year, you will make 26 payments a year (52 2). To calculate the amount of your accelerated biweekly payments, divide your monthly payment by two (for example, \$1,000 2 = \$500). You make the equivalent of one extra monthly payment per year, which means you will pay off your mortgage faster and save in interest charges. Amortization period The period of time it will take to pay off a mortgage in full. The most common amortization period for a new mortgage is 25 years. Not to be confused with the term of the mortgage. Interest The amount paid by a borrower to a lender for the use of the money. Prepayment Payment of an additional portion or all of the principal balance before the end of your term. Lenders may charge fees when you use a prepayment option under a closed mortgage agreement. Prepayment Penalty A fee charged to you by the lender for making a prepayment greater than the amount allowed in your mortgage agreement, or for paying off a closed mortgage before the end of the term. Principal The amount of money that you borrowed from a lender to pay for your home. Term The period of time your mortgage agreement will be in effect. At the end of the term, you either pay off the mortgage in full, renew it or possibly renegotiate your mortgage agreement (for example, decrease your amortization period). Terms are generally for six months to 10 years. Not to be confused with the amortization period. 10

13 Notes 11

14 12 Notes

### MORTGAGE PREPAYMENT: KNOW YOUR OPTIONS Smart mortgage decisions start here. ABCs OF MORTGAGES SERIES

MORTGAGE PREPAYMENT: KNOW YOUR OPTIONS Smart mortgage decisions start here ABCs OF MORTGAGES SERIES About Financial Consumer Agency of Canada (FCAC) With educational materials and interactive tools, the

### Borrowing on Home Equity

ABCs of Mortgages Series Borrowing on Home Equity Smart mortgage decisions start here Table of Contents Overview 1 What are the different options? 2 1. Refinancing 3 2. Borrowing amounts you prepaid 4

### Renewing and Renegotiating Your Mortgage

ABCs of Mortgages Series Renewing and Renegotiating Your Mortgage Smart mortgage decisions start here Table of Contents Overview 1 The renewal process 2 Renegotiating your mortgage agreement: breaking

### Borrowing on Home Equity

ABCs of Mortgages Series Borrowing on Home Equity Smart mortgage decisions start here Table of Contents Overview 1 What are the different options? 2 1. Refinancing 3 2. Borrowing amounts you prepaid 4

### Renewing and Renegotiating Your Mortgage

ABCs of Mortgages Series Renewing and Renegotiating Your Mortgage Smart mortgage decisions start here table of contents overview 1 the renewal process 2 renegotiating your mortgage agreement: breaking

ABCs OF MORTGAGES SERIES BUYING YOUR FIRST HOME: THREE STEPS TO SUCCESSFUL MORTGAGE SHOPPING Smart mortgage decisions start here About Financial Consumer Agency of Canada (FCAC) With educational materials

### Choosing the Right Savings Account

BANKING Choosing the Right Savings Account A savings account is a good way to save money for short-term goals or to build an emergency fund for unexpected expenses. The interest rate, account fees and

### Choosing the Right Credit. Credit Cards and You series

Choosing the Right Credit Card for You Credit Cards and You series About Financial Consumer Agency of Canada (FCAC) With educational materials and interactive tools, the Financial Consumer Agency of Canada

ABCs of Mortgages Series Buying Your First Home: Three Steps to Successful Mortgage Shopping Smart mortgage decisions start here Note: FCAC s Mortgage Calculator tool, available at itpaystoknow.gc.ca,

### Credit Cards and You series. Credit Cards: Understanding. Responsibilities

Credit Cards and You series Credit Cards: Understanding Your Rights and Your Responsibilities About Financial Consumer Agency of Canada (FCAC) With educational materials and interactive tools, the Financial

### DEBT CHECK-UP: ARE YOU AT RISK IF INTEREST RATES RISE?

BUDGETING AND MONEY MANAGEMENT DEBT CHECK-UP: ARE YOU AT RISK IF INTEREST RATES RISE? Interest rates are at all-time lows in Canada, but they are likely to rise at some point. When they do, you can expect

### Making a Budget and Sticking to It

Budgeting and money management Making a Budget and Sticking to It Do you cringe when you hear the word budget? Sure, a budget involves a bit of work on your part, but the payoff is financial discipline

### BUYING YOUR FIRST HOME: THREE STEPS TO SUCCESSFUL MORTGAGE SHOPPING MORTGAGES

BUYING YOUR FIRST HOME: THREE STEPS TO SUCCESSFUL MORTGAGE SHOPPING MORTGAGES June 2015 Cat. No.: FC5-22/3-2015E-PDF ISBN: 978-0-660-02848-4 Her Majesty the Queen in Right of Canada (Financial Consumer

### Choosing the Right Chequing Account and Banking Package

BANKING Choosing the Right Chequing Account and Banking Package A chequing account is a good way for most people to manage their day-to-day banking needs. Banks, credit unions, caisses populaires and other

### Choosing the Right Credit Card for You. Credit Cards and You series

Choosing the Right Credit Card for You Credit Cards and You series About FCAC With educational materials and interactive tools, FCAC provides objective information about financial products and services

### Credit Cards and You series. Understanding Credit Card Fees

Credit Cards and You series Understanding Credit Card Fees About FCAC With educational materials and interactive tools, FCAC provides objective information about financial products and services and informs

### CREDIT CARD BALANCE INSURANCE PAYMENT OPTIONS

CREDIT CARD BALANCE INSURANCE PAYMENT OPTIONS About Financial Consumer Agency of Canada (FCAC) With educational materials and interactive tools, the Financial Consumer Agency of Canada (FCAC) provides

### Protecting Your Credit Report: How to Correct Errors and Check for Fraud

Budgeting and Money Management Protecting Your Credit Report: How to Correct Errors and Check for Fraud Your credit report is important for your financial health. It can help you get approved for credit

### Mortgage Basics Glossary of Terms

Mortgage Basics Glossary of Terms Buying a home is an important financial decision. It is important to familiarize yourself with the features of the different types of mortgages, so that you understand

### Managing Debt: Getting Help from a Credit Counselling Agency

Budgeting and money management Managing Debt: Getting Help from a Credit Counselling Agency What are credit counselling agencies? Credit counselling agencies provide a range of services for people in financial

### What Is A Bi Weekly Payment Plan? By: Reina Bauer, Southeast Mortgage. Why Does A Bi Weekly Program Help You?

What Is A Bi Weekly Payment Plan? By: Reina Bauer, Southeast Mortgage In a bi weekly payment plan you are not getting any type of new loan or doing anything drastic to your current loan. What you are doing

### Understanding the mortgage prepayment charge

Understanding the mortgage prepayment charge When choosing the type of mortgage you want, there are many factors you need to consider. Do you want a short- or long-term mortgage? Do you want a fixed or

### PAYDAY LOANS: AN EXPENSIVE WAY TO BORROW MORTGAGES AND LOANS

PAYDAY LOANS: AN EXPENSIVE WAY TO BORROW MORTGAGES AND LOANS Table of Contents What is a payday loan? 1 How do payday loans work? 1 How much do payday loans cost compared to other forms of credit? 2 What

### YOUR MORTGAGE PLANNING GUIDE. John Cavan,

YOUR MORTGAGE PLANNING GUIDE Compliments of John Cavan, TABLE OF CONTENTS This mortgage planning guide will take you through 4 easy steps to OBTAIN a MORTGAGE. 1 2 34 STEP 1 CONNECT 04 ABOUT MY SERVICES

### Financial Literacy. Credit basics

Literacy Credit basics 2 Contents HANDOUT 6-1 Types of credit Type of credit Lender Uses Conditions Revolving credit Credit Cards (secured and unsecured NOT prepaid) To make purchases, pay bills, make

### Westpac. Home Loans. Enjoy a place of your own with your. Westpac. Home Loan

Westpac Home Loans Enjoy a place of your own with your Westpac Home Loan We know you d rather talk about your new home than a new home loan. After all, buying a home is an exciting journey. But we d like

### The Ultimate Mortgage Checklist

The Ultimate Mortgage Checklist The Rate 1. Is the rate you re quoting me the lowest I can possibly get, given my qualifications and mortgage preferences? 2. If I find a lower rate for a similar product

### First Timer s Guide PREParing First Time Homebuyers

First Timer s Guide PREParing First Time Homebuyers SO MANY QUESTIONS Maybe you live in the best apartment with a great landlord and don t want to change a thing. Or maybe you ve looked at the rent going

### Westpac. Home Loans. Enjoy a place of your own with your. Westpac. Home Loan

Westpac Home Loans Enjoy a place of your own with your Westpac Home Loan We know you d rather talk about your new home than a new home loan. After all, buying a home is an exciting journey. But we d like

### Dealing with your mortgage shortfall

Dealing with your mortgage shortfall The options available Things to consider Helping you stay on track The Money Advice Service is independent and set up by government to help people make the most of

### Debt Freedom. Primerica Canada Debt Freedom System

Debt Freedom Primerica Canada Debt Freedom System To receive a SMART Loan referral fee, the new associate must introduce the client to the certified field trainer to make the referral. New associates must

### The RBF also licenses some credit institutions that provide personal loans (for education, travel etc), business loans, mortgages and vehicle loans.

Welcome again to the Public Awareness column provided by the Reserve Bank of Fiji (RBF). This month s article focuses on borrowing money and managing that credit. We also provide some issues you should

### INSURANCE. Understanding Insurance Basics

INSURANCE Understanding Insurance Basics table of contents What is insurance? 2 How does insurance work? 2 Why would I need insurance? 2 Understanding the language of insurance 3 Life and health insurance

### INFORMATION ABOUT THE PREPAYMENT PENALTY WHEN REIMBURSING A MORTGAGE/HYPOTHECARY LOAN IN ADVANCE

INFORMATION ABOUT THE PREPAYMENT WHEN REIMBURSING A MORTGAGE/HYPOTHECARY LOAN IN ADVANCE In this document, you and your mean the borrower and we, us and our mean B2B Bank and/or Laurentian Bank of Canada

### PROTECTING YOUR CREDIT REPORT: HOW TO CORRECT ERRORS AND CHECK FOR FRAUD

CREDIT AND LOANS PROTECTING YOUR CREDIT REPORT: HOW TO CORRECT ERRORS AND CHECK FOR FRAUD Your credit report is important for your financial health. It can help you get approved for credit cards and other

### UNIT 6 2 The Mortgage Amortization Schedule

UNIT 6 2 The Mortgage Amortization Schedule A home mortgage is a contract that requires the homeowner to make a fixed number of monthly payments over the life of the mortgage. The duration, or length of

### Interest-Only Mortgage Payments and Payment-Option ARMs Are They for You?

Board of Governors of the Federal Reserve System Federal Deposit Insurance Corporation National Credit Union Administration Office of the Comptroller of the Currency Office of Thrift Supervision Interest-Only

Refinancing Your Existing Mortgage Your home is your largest single asset and it can be a powerful financial tool. As you build up your equity over time, you will have access to a variety of borrowing

### Mortgage Basics 101. Talk to your CIBC Mobile Mortgage Advisor today.

Mortgage Basics 101 Mortgages are big investments that require financial stability and dedication. Start the process on the right foot by familiarizing yourself with different types of mortgages and rates,

READY TO REFI? A SIMPLE GUIDE TO REFINANCING YOUR HOME INTRODUCTION You ve had your home loan for a few years, but the rate you are currently paying is much higher than the near-historic low rates you

### Mortgage Fraud Home Equity Scams Choosing a Loan

Mortgage Fraud You could lose your home and your money if you borrow from unscrupulous lenders who offer you a high-cost loan based on the equity you have in your home. Certain lenders target homeowners

1 SAMPLE Mr. John Doe, CONGRATULATIONS ON YOUR HOME PURCHASE! Quick Facts about your mortgage. AMOUNT \$450,000.00 TERM INTEREST RATE 3.00% FIXED TERM, 5 YEARS PAYMENT \$2,129.60 / MONTH TERM 5 Years ENDS

### Table of Contents Reverse Mortgage O verview... Reverse Mortgage K ey Questions... 5 Reverse Mortgage Pros and Cons... 7 Reverse Mortgage Borr

1 Table of Contents Reverse Mortgage Overview... Reverse Mortgage Key Questions... Reverse Mortgage Pros and Cons... Reverse Mortgage Borrower Qualification... Reverse Mortgage Key Items... Reverse Mortgage

### Mortgage Fraud. Table of Contents. Home Equity Scams Choosing a Loan Home Equity Dos Home Equity Don ts

Mortgage Fraud Table of Contents Home Equity Scams Choosing a Loan Home Equity Dos Home Equity Don ts Reverse Mortgages Home Loan Law HOEPA Prevents For more information on Mortgage Fraud visit: You could

### INFORMATION ABOUT THE PREPAYMENT INDEMNITY WHEN REIMBURSING A MORTGAGE/HYPOTHECARY LOAN IN ADVANCE

INFORMATION ABOUT THE PREPAYMENT WHEN REIMBURSING A MORTGAGE/HYPOTHECARY LOAN IN ADVANCE In this document, you and your mean the borrower and we, us and our mean Laurentian Bank of Canada (hereinafter

### debt Managing debt Easy to get into, harder to get out Inside... Think before you borrow Know your options Make a debt repayment plan

debt Managing debt Easy to get into, harder to get out Inside... Think before you borrow Know your options Make a debt repayment plan Think before you borrow Borrowing money is called getting into debt.

### Chapter 4: Managing Your Money Lecture notes Math 1030 Section D

Section D.1: Loan Basics Definition of loan principal For any loan, the principal is the amount of money owed at any particular time. Interest is charged on the loan principal. To pay off a loan, you must

### CANADIAN RELOCATION SYSTEMS, HOUSE AND MORTGAGE

CANADIAN RELOCATION SYSTEMS, HOUSE AND MORTGAGE 1. HOUSE AND MORTGAGE 2. PURCHASING A HOUSE 3. MORTGAGE RATES 4. HOW TO PAY OFF YOUR MORTGAGE FASTER 1. HOUSE AND MORTGAGE If you are buying a property ask

### Welcome. 1. Agenda. 2. Ground Rules. 3. Introductions. Your Own Home 2

Your Own Home Welcome 1. Agenda 2. Ground Rules 3. Introductions Your Own Home 2 Objectives If you are a pre-homebuyer: Explain the advantages and disadvantages of renting versus owning a home Identify

### Remember the Interest

STUDENT MODULE 7.1 BORROWING MONEY PAGE 1 Standard 7: The student will identify the procedures and analyze the responsibilities of borrowing money. Remember the Interest Mom, it is not fair. If Bill can

### from Your Credit Card Understanding the Terms and Conditions

Getting the Most from Your Credit Card Understanding the Terms and Conditions If you want to know How to choose a credit card that meets your needs How to determine if the interest-free applies How to

### First Timer s Guide PREParing First Time Homebuyers

First Timer s Guide PREParing First Time Homebuyers SO MANY QUESTIONS Maybe you live in the best apartment with a great landlord and don t want to change a thing. Or maybe you ve looked at the rent going

### SHOPPING FOR A MORTGAGE

SHOPPING FOR A MORTGAGE The Traditional Fixed-Rate Mortgage Key characteristics: Level payments, fixed interest rate, fixed term. This mortgage is the one which most of us know, and it is still the loan

### Consumer Handbook on Home Equity Lines of Credit

Consumer Handbook on Home Equity Lines of Credit The Housing Financial Discrimination Act of 1977 Fair Lending Notice (CALIFORNIA RESIDENTS ONLY) It is illegal to discriminate in the provision of or in

### KNOW YOUR MORTGAGE RISKS & RESPONSIBILITIES

KNOW YOUR MORTGAGE RISKS & RESPONSIBILITIES Getting a mortgage is often the largest financial commitment Canadians make. Mortgages can come with many benefits. Mortgages will help you own your own home.

Information for First Time Buyers Buying your first home? It is a big purchase and can be a little intimidating, but it doesn t have to be. There are many Home Buyer Guides and Reports available on the

### 2011 Mortgage Consumer Survey

CANADA MORTGAGE AND HOUSING CORPORATION 2011 Mortgage Consumer Survey Everything you need to open new doors Key Findings from the 2011 Survey Buyers continue to view homeownership as an investment and

### Selecting the Mortgage Term: How to Compare the Alternatives

Currently, 15-year mortgages are available at more attractive rates than 30-year terms, but they also entail higher monthly payments. Which is better? A look at the analysis. Selecting the Mortgage Term:

Daryl Marsden has been in the mortgage brokerage business since 1999. He is an active member of the Alberta Mortgage Brokers Association and is a past Communications director of this board. Daryl is also

### Home Financing Guide

Home Financing Guide Table of Contents Is Home Ownership Right for You? 1 Basics about Your Mortgage Options 2 Conventional or High Ratio Mortgage 3 Options for a Down Payment 3 Understanding Amortization

### 02.03. Section 02 Loans & Expenses. Unit 03 Buying a Home. Overview. Goal. Time Frame. Be it ever so humble, there s no place like home.

Section 02 Loans & Expenses 02.03. Unit 03 Buying a Home Be it ever so humble, there s no place like home. John Howard Payne Overview Home ownership isn't for everyone. With all the financing, closing

### Credit 100 understanding credit

Credit 100 understanding credit An investment in knowledge always pays the best interest. Franklin D. Roosevelt Credit 100 1 Credit can open doors to buying a home or a car. But it can also lead to significant

### Insurance. Understanding Insurance Basics

Insurance Understanding Insurance Basics About FCAC With educational materials and interactive tools, the Financial Consumer Agency of Canada (FCAC) provides objective information about financial products

### HOME EQUITY LINE OF CREDIT

Creditor: STANFORD FEDERAL CREDIT UNION HOME EQUITY LINE OF CREDIT This disclosure contains important information about our Home Equity Line of Credit. You should read it carefully and keep a copy for

### Everything You Need to Know About Mortgage Refinancing

Everything You Need to Know About Mortgage Refinancing 1 Table of Contents Content Page Overview 3 Chapter 1: Types of Mortgages 4-8 Chapter 2: Types of Mortgage Interest 9-10 Chapter 3: Types of Lenders

### Handbook: The Cost of Borrowing. Learn what you need to know quickly.

Handbook: The Cost of Borrowing Learn what you need to know quickly. Money Matters Handbook: The Cost of Borrowing Groceries cost. Clothes cost. Furniture costs. And it costs to borrow money. The amount

### HOME EQUITY LINES OF CREDIT

HOME EQUITY LINES OF CREDIT WHAT YOU SHOULD KNOW ABOUT HOME EQUITY LINES OF CREDIT: More and more lenders are offering home equity lines of credit. By using the equity in your home, you may qualify for

### WHAT IS EQUITY RELEASE? WHY CONSIDER EQUITY RELEASE?

WHAT IS EQUITY RELEASE? Equity Release can free some of the capital tied up in your home, while you continue to live there. This money can be in the form of a tax-free lump sum, a regular income or a combination

### House Rich and Cash Poor: Ways to Unlock Your Home s Value

House Rich and Cash Poor: Ways to Unlock Your Home s Value Avenidas Housing Conference, March 10, 2012 Barbara Krimsky Binder, CFP, BKB Financial Advisors Does This Describe Your Situation? - You bought

### How To Cut The Cost of Credit

Published by the NATIONAL ASSOCIATION OF CONSUMER CREDIT ADMINISTRATORS May be reproduced with appropriate credit. For more information, contact: [ ] How To Cut The Cost of Credit Distributed by: Missouri

### Reverse Mortgages A Source of Funds for Retirement?

Reverse Mortgages A Source of Funds for Retirement? Many people make it a goal of their financial lives to invest in a home. It is a great accomplishment when that last mortgage payment is made. Can a

### Managing debt. It s easy to get into, harder to get out. Inside... debt. Think before you borrow. Know your options. Make a debt repayment plan

debt Managing debt It s easy to get into, harder to get out. Inside... Think before you borrow Know your options Make a debt repayment plan brought to you by the retirement commission Think before you

### Definitions. In some cases a survey rather than an ILC is required.

Definitions 1. What is the closing? The closing is a formal meeting at which both the buyer and seller meet to sign all the final documentation required for the buyer's mortgage loan. Once the closing

### 14.4 Mortgage Loans: Additional Topics

14.4 Mortgage Loans: Additional Topics A mortgage loan sometimes involves costs in addition to interest charges. In this section, you will learn how to incorporate these additional costs into an overall

### How the Fannie Mae Foundation can help.

How the Fannie Mae Foundation can help. If you re like most Americans, homeownership is a major part of the American dream. The Fannie Mae Foundation can help you understand the steps you will need to

### Home Equity Lines of Credit

The Federal Reserve Board What you should know about Home Equity Lines of Credit Board of Governors of the Federal Reserve System www.federalreserve.gov 0708 i What You Should Know about Home Equity Lines

### WHAT YOU SHOULD KNOW ABOUT HOME EQUITY LINES OF CREDIT

WHAT YOU SHOULD KNOW ABOUT HOME EQUITY LINES OF CREDIT If you are in the market for credit, a home equity plan is one of several options that might be right for you. Before making a decision, however,

Using Credit to Your Advantage. Topic Overview. The Using Credit To Your Advantage topic will provide participants with all the basic information they need to understand credit what it is and how to make

### Your Assets: Financing and Refinancing Properties

The Business Library Resource Report #35 Your Assets: Financing and Refinancing Properties Personal, Investment, and Business Properties! Basic Analysis of How and When! Fixed vs. Variable Interest Rate!

### The Cost of Payday Loans

The Cost of Payday Loans Table of Contents What is a payday loan? 1 How does a payday loan work? 2 How and when do I pay back the loan? 4 How does a payday loan affect my credit report? 4 How much will

### Mortgage Safety Tips. Stability is important in your home life it s essential in your home mortgage.

Stability is important in your home life it s essential in your home mortgage. What s the difference between a mortgage broker and a mortgage bank? A broker does not lend money, but merely originates a

### for Newcomers and New Canadians Module 2 How to Build Credit In Canada Student Workbook

for Newcomers and New Canadians Module 2 How to Build Credit In Canada Student Workbook Welcome! This workshop is about credit. Credit is buying something now, but paying for it later. Credit can be useful

### What is a home equity line of credit?

Page 1 of 5 ESPAÑOL (Revision forthcoming) If you are in the market for credit, a home equity plan is one of several options that might be right for you. Before making a decision, however, you should weigh

### Personal Finance. Chapter 1. Chapter Goals. Out of the Nest

11 Chapter 1 Personal Finance Out of the Nest As young adults begin to establish themselves independently of their parents, they may consider renting their own apartment, purchasing a home, or even beginning

### Don t Borrow Trouble! Mortgages, Home Equity Loans and Refinancing

Don t Borrow Trouble! Mortgages, Home Equity Loans and Refinancing Find more easy-to-read legal information at www.ptla.org Five Basic Tips Are you looking for a home equity loan? Or are you trying to

Table of Contents Checking In... 3 Pre-Test... 4 What Is Credit?... 6 Collateral... 6 Types of Loans... 7 Activity 1: Which Loan Is Best?... 8 The Cost of Credit... 9 Activity 2: Borrowing Money Responsibly...

### This booklet was initially prepared by the Board of Governors of the Federal Reserve System. The Consumer Financial Protection Bureau (CFPB) has made

This booklet was initially prepared by the Board of Governors of the Federal Reserve System. The Consumer Financial Protection Bureau (CFPB) has made technical updates to the booklet to reflect new mortgage

### New Mortgage Rules 2012

Contents Who do they apply to?... 2 What are the changes?... 2 Amortization... 2 What Happens When I Renew My Mortgage?... 3 Debt Servicing Requirements:... 4 Restriction on Million-Dollar Mortgages...

### DEBT ELIMINATION FEBRUARY 19, 2015

PREPARED FOR: John and Mary Sample 145 River Pine Circle Woodland Hills, UT 84633 phone: (802) 453-8999 PRESENTED BY: Ryan Advisor ChFC, CPA Demo Company 2253 Fig Garden Drive Salt Lake City, UT 84001

### for independent information mortgages made easy

for independent information mortgages made easy About us We are an independent watchdog set up by the Government to: regulate firms that provide financial services; and help you make informed decisions

### Investing in unlisted property schemes?

Investing in unlisted property schemes? Independent guide for investors about unlisted property schemes This guide is for you, whether you re an experienced investor or just starting out. Key tips from

### REVERSE MORTGAGE GUIDE

REVERSE MORTGAGE GUIDE Retire comfortably with a Reverse Mortgage CRAIG MINTON - AMERICAN NATIONWIDE MORTGAGE - 757-254-1331 Introduction Hello my name is Craig Minton, Regional Manager and Reverse Mortgage

### The Federal Reserve Board

The Federal Reserve Board What you should know about Home Equity Lines of Credit Board of Governors of the Federal Reserve System What You Should Know about Home Equity Lines of Credit 1 More and more

### What You Should Know About Home Equity Lines of Credit and Important Terms of FlexEquity SM

What You Should Know About Home Equity Lines of Credit and Important Terms of FlexEquity SM Effective March 1, 2008 The Housing Financial Discrimination Act of 1977 Fair Lending Notice It is illegal to