Latest Blog Posts
Tips to Save Your Money
August 11th, 2020
Here are 3 mortgage tips that will save you money…
1) Ask about pre-payment privileges
2) Find out the penalties for breaking your mortgage
3) Weigh the benefits of a lower downpayment
If you want to know if any of these tips would apply to you, contact me today.
Manage Your Debt
July 24th, 2020
The best thing you can do to manage your debt is to borrow LESS than you are allowed….Your housing costs shouldn’t be more than 32% of your gross income. Housing costs include mortgage principal and interest, taxes, heating expenses and half of your condo fees. Find out the home-related costs you can afford each month. Calculate your gross debt service ratio. Your total debt (for housing, cars and credit cards) shouldn’t be more than 40% of your gross income. Find out the maximum debt load you can carry each month. Calculate your total debt service ratio.Borrowing this maximum amount can be risky. If your income drops, your expenses increase or interest rates rise, you may have trouble making your payments. Take on a smaller mortgage so that your housing costs stay within your means.
Secure a Low Rate
July 20th, 2020
Interest rates may be low right now, but what would happen if they increase? Can you afford it? An increase in the interest rate will increase your future monthly payments.
For example, if interest rates rise from 5% to 7%, renewing a $250,000 mortgage will cost an extra $300 per month.
It’s always important to secure a mortgage payment that you can comfortably afford now and also when/if interest rates increase.
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