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Page THE H ALTON HILLS Saturday September Options are available to pay off mortgage If you re like most homeowners you eagerly anticipate I he when you make your final mortgage pa You he finan cial freedom you II and what can do with the would normal spend on your gage For most people an take a while for dream to become a reality Bui it have to be as far off as you may think There art- several options lo let paj off your mortgage more In fact choosing a shorter amortization period when ar range vour mortgage vou can pa off your mortgage faster making substantial savings in in over the cars In most cases each mortgage ment is blended and is applied to both principal and interest the beginning of a mortgage the in portion of the is ex high Bui as a mortgage matures more and of the pav ment is applied against the The most common mortgage amortization penod is it that period can save a substantial portion of monev in interest because erode the principal amount of monev vou owe much more shorter amortization period means larger but to mam pie this is a worthwhile consider because of the long term sav For example a mortgage of amortized over vears at per cent interest would result in mortgage pavments of St 118 and a of pav merits for the same mortgage amortized over It vears would be just more or SI resulting in a tola of Ml and long term mgs of SI when compared to the vcar schedule provided the interest rate remained the same for he full period While the above figures appear to be astounding keep in mind that the interest rate will fluctuate somewhat each time renew a term of our mortgage Payments Although most people make another popular method of paving off mortgage involves or semi monthlv This lvpt of pav schedule will reduce the amount of principal owe more fuicklv because vou on a much more frequent basis and less in is accrued The drawback to a frequent of course is have to know preciselv whai jour income is going be for a set period of time to ensure that vou are able to meet the pavments Accelerated pav are another option allowing homeowners to make an additional pa each to he overall payment schedule The following chart shows how much can be saved making week and accelerated payments using a mortgage amortized over years at 11 per cent Some people commit themselves to a payment schedule thai is too high and end up with cash flow pro blems As shown the weekly plan provides considerable savings because pavments are made more often and earlier than a conventional monthlv mortgage The accelerated weeklv plan allows the mortgage to be retired in just vears instead of limujl incuts Some people prefer to irake a lump sum ment tow on the dale of their mortgage as is permitted on mortgages similar to the accelerated plan above i This again reduces the amount of vou pav in the long term because interest would hen be calculated on the lower amount of principal As the interest component of regular is reduced more goes inwards paving down the resulting a fsiei period However if vou re a situation where vou know income is go to be stagnant for some tune ihen mav wan to choose a nor ma I period That wav if vou can accumulate some etra capital in later vou can make a lump sum pavment provided that mortgage has privileges Some people would find it verv dif to accommodate regular or because jusi don have the of funds to make these frequent pavments comforiablv But making the equivalent of even one extra mortgage per can save vou a considerable amount in the long term our RE or a repuiable mortgage a bank or mortgage broker firm should be able advise vou all of these possibilities and to tailor a mortgage to vour particular income flow and needs Flexibility When arranging a mortgage it important to look for flexibilih Shop around and establish terms that are going to be comfortable for vou and make sure vour mortgage allows vou to make an optional cipal once a on the mortgage annnersarv date The ceiling on these deges can ar hut most are between in and It per cent In mam cases vou will have to pav i for privileges hul gain also make sure vou have a clear understanding what pav menl obligations are real estate professional is well equipped to lei vou know ahoui various mortgage options and the types pavment plans available from local lending institutions Heal estate practitioners art aware of their and customers needs and are vcrv capable of giving sound assistance and direct ion to help them get the best possible terms This is local Keillors met the Ontario fti il Estate Being overloaded with debt can lead to personal crisis Payment Calculation Mortgage Repaid In Interest Savings 551 12 St 1 credit lets consumers buy what they want now and pa for it later but what do the do if it leads them deeply into debt Whether its because the re out of work or owe more than their in tome can handle being in debt over their head can often lead to crisis and despair The first step advises Marilyn of the Ontario Ministry of Consumer and Commercial Relations is o put aside credit cards in a safe place out of easy reach Leave them there until debt problems are resolved The next step is to develop a replayment plan beginning with a summary of each amount owing and its interest rate Paying off the debts with the highest interest rotes is a priority bank department store and oil credit cards cost vou the most in interest charges so concentrate on paying hem off first says a chief consumer advisor for the One approach is to consolidate the debts taking out a bank loan to pav off these higher interest creditors away As bank loans are generally at lower in terest rates than credit cards the debt can off faster If vou re not able to solve your debt problems this way because ve lost job or are unable to work or don have sufficient in come coming in to for a bank loan contact vour creditors and explain your situation says While this may be embarrass ing creditors will usually help peo pie who are experiencing an unex crisis but want to resume payments as soon as possible Most creditors will agree to delaying or spreading repayment over a longer term rather than take strong measures Ask creditors what arrangements can be made They may allow you to make no payments for a long time or pro pose a new repayment schedule For help recommends contacting a credit counselling vice offered at no cost to the client Funded by the Ontario of Community and Social Services and the credit granting community credit counselling vices mediate between the in dividual and the creditors The counselling service helps develop a repayment plan which determines how much the person can regularly pav and then divides that money according to each creditors share of he total debt The person brings the payment to the counselling ser vice which acts as a trustee and forwards the money to the creditors Bantruptcy is a last resort and may be the only alternative for those unable to pay their living ex and make payments on their debts For more details about credit The Ministry of Consumer and Commercial Relations has produc ed the Ministry s formation Centre at Street Toronto Ontario 2Hfi Tel or toll free 1142 The line for persons with impaired hearing is 3268566 RECYCLING it oil do pan Please Remember to Recycle This Newspaper JUST A LITTLE PUSH COULD MAKE A BIG DIFFERENCE With push of a can put ulrs will bo JnThrltrrald us a call and one- our advertising will you plan a promotion pucka trtal tour ad Call Display Advertising the HERALD A Calculation and example provided by the Hank of Montreal lor SEPTEMBER SPECIAL LPINE HOMES PRICED homes at Dont miss this opportunity to live in Scenic Only minutes west of the air port Follow signs from 7 at south edge of Rockwood For information call 5198246185 or Closed Sundays CHOICE OF SO FT MODELS A ON FULL DETACHED LOTS J ALPINE HOMES LTD Watson Uml I Guelph Ontario 5198246185 Marty Van Engen