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Page SECTION C THE HERALD Wednesday 1- Mortgage rule No One Get rid of it Now for the horrible truth about mortgages If Lb re Is one single question which above others I hear the most It is this Should I pay oft the mortgage The circumstances of people asking vary widely But the answer It yes one act can guar an Lee your security It can calm and Make you realize you have a measure of and yet Incred ible freedom SHU despite til this there are thousands of people deluded Into thinking cash In the bank at a higher rate of return than the Interest payable on the gage is a wise Invest How wrong they are And bow much their silent wealth Is being stolen from them Too late they realise the folly of their ways The point Is simply this You must strive to Set the greatest bang from your after tax dollars Wiih the rubble that left of your pay cheque when the income tax CPP and retail sales tax people get finished One thing you want to stop doing Is making mortgage payments with this precious cash Because realizing these are dollar already mated the real rate or Interest on the home loan Is unreal Those who feel they are profiling by getting on a savings account and delay put ting that cash towards a 11 mortgage are nuts Consider someone in the Income tax bracket with money In the bank yielding After the basic tax free Interest income allow the return on that Investment expressed In after tax dollars drops to And considering Ihe effect of Inflation whether Its or the real return drops even further Now look at lb mortgage this person Is making payments on Because these are made after taxes are paid at the rate of the real rate of interest Isdoubted The mortgage In other words Is costing this sap about three times more than the savings account Is bringing In And this Is true not Just for those In higher tax brackets but for all of us Someone making a year remember losing of his Income to taxes so the real Interest on a 15 gage Is There Is a way to slop this madness It Is to take all available cash and throw It at the clpal owed In this manner the cumulative and staggering interest on the debt can be sharply reduced And In that way be vastly Increasing the amount of aftertax Income In years to come In a time when Interest rates arc so vol Calendars aid fund Water beauty power and life giving force la the theme of the 196J desk available now throughout Ontario This attractive diary la a celebration of the Inter national Water Decade declared for the I960 a by United Nations It contains full page colour photographs Illu strating the vital and varied ways In which water plays a part in our lives For a free colour bro chure illustrating the 1983 holiday range of cards and gifts and details of your nearest sales location contact the Georgetown a I S3 SAVE ON HEATING COSTS Wo can caulk your win doors chimneys etc to you energy Lowest com In ttw area F0fl MORE MHMMATIONCAiL ROBERT TAIT INSURANCE AGENCY LTD IMQUELPHBT 0774814 See me for car home life boat and business insurance atlle and the threat exists or pa Increased on the renewal date thh is essential And don I doubt for a minute Interest rates In this country will remain high The days 10 mortgages are gone The days of long term mortgages are likely gone There is no If there ever was In saddling yourself with Ihe largest home loan can make payments on You see It Is the nature or mortgage debt the way It lured which makes It so sickening Even If you had to lake a personal bank loan at 19 to pay off a mortgage at it would make beautiful sense Mortgages arc a lied an exceptionally long period of lime usually years and set tip so you pay Interest from the very start on Whole amortised beast In fact clever lenders have constructed this thing so they get their Interest out of you first and the principal later In the early years of a mortgage a monthly payment of for example could be made up of WO principal and interest The interest portion Is front end loaded with the last payments mostly clpal should you live so bo wee paid back between three and four times So the real rate of Interest is closer to than 13 or 15 or This Is awful lint It And It makes you wonder how on earth anyone can sit around and make monthly pay menls when they have the cash on hand or Can borrow It to gel out from under the mortgage cloud Bank term loans are all different They re a lot more honest You borrow money for a period of time and the interest is calculated on the whole and added evenly to each payment With every cheque then you are reducing the Instead of aving It He there like a lump and costing you Interest over and over again on every dollar you first borrowed So think about rowing from bank to pay off the mortgage Think about working out a deal with your mortgage company so you can make higher monthly payments with the difference being applied to principal Or talk to them about shortening the I lion period in return for higher payments bank accounts and term deposits to apply to the mortgage debt even when It might appear you re belter off not to Because you t from Year Financial Rescue edited by Garth Turner To order your post paid copy send to Rescue Bex MS Station A Toronto Ontario BARRY CHARTERED ACCOUNTANT Mountainvlew Rd S Suite 301 Halton Hills Georgetown Ontario L76 8776948 The Halton Hills Herald CLASSIFIED AUTOMOBILE GUIDE JOES GULF SERVICE LICENSED MECHANICS SPtCIAUMG IN TIME UPS MAKES WHEEL SHOCKS EXHAUST SYSTEMS HWY 7 8778731 GEORGETOWN J MAD SERVICE JAKES AUTO SERVICE STREET TELEPHONE S3 HotmszTUitL Stop Sinclair A KENS AUTO SERVICE aiWTwaaj JOES GULF SERVICE Licensed Mechanics Specializing in BRAKES ELECTRONIC TUNEUPS EXHAUST SYSTEMS WHEELBALAHCING SHOCKS CAR INSPECTION SAFETY HWY 7 DELREX 8778731 Support the Community Shop Halton Hills TSA ENTERPRISES SPECIALISTS COMPLETE SERVICE FREE ESTIMATES ARMSTRONG AVE 8770873 ARMSTRONG COLLISION CENTRE An