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8-Orono Weekly Times, Wednesday, June 29, 1983 The Craft Place officially opens Trafford officially opened the Craft Place at the home of Mrs. Trafford's Saturday morning with a fine display Mayor Rickard cut the ribbon ribbon for the official opening assisted by Counc. Diane Hamre. , interesting shop to peruse and is located on Rowe Street in the Village of Orono. Mortgages --Part III Mortgage Agreements: A Checklist Appointment of a negotiator Doug Belch of Kingston has been appointed as a mediator by the Education Relations Commission in the negotiations between the trustees and secondary school teachers of - t he Northumberland Northumberland and Newcastle Board of Education. Mr. Belch is a member of the Kingston law firm of Cunningham, Swan, Carry, Little and Bonham. He received both his Bachelor of Arts ('64). and law degree ('67) Irom Queen's University. University. Mr. Belch is also a lecturer in family law at the Faculty of Law, Queen's University, bas attended ERC workshops in dispute resolution an. served as a Mediator in Tim mins • Secondary Board of Education. ' .This appointment is made .--under Section 13 of the School Boards and Teachers Collective Negotiations Act, Revised Statutes of Ontario, : 1980. For further information, please contact: Mr. Jim Breckenridgc, Information Information Officer. Call of the wild. 133 picture perfect for you to d Ontario, Ontario Ministry of 800 Alan w Natural ***** W T. Foster Resources Ceputy tAntew For information; call toll free 1-800-868 In the first two parts of mortgage assistance, such point out that the home- this series, the importance as government-insured buyer can do such a cal- of mortgage interest rates NHA mortgages. culation and divide the and the length of term of a mortgage in relation to a homebuyers ability to afford afford the payments has been discussed. The rates, and terms (1, 2, 3, or 5 years) which leaders currently offer are published regularly in the newspapers. Not as available, however, is detailed information on the other clauses of a mortgage agreement. "Homebuyers considering a mortgage should sit down with their lender as a first step" said Robert Keller, Vice President of Corporate and General Lending at Victoria and Grey Trust Company, which provides mortgage funds for more than 75,000 households in Canada. "There are several variables, and valuable options are sometimes available available which could dramatically dramatically improve a borrower's situation". Mr. Keller lists the following following as some of the factors which should be carefully considered before signing the agreement: • does the monthly carrying carrying cost of interest, principal principal and taxes require no more than 30% of gross family income? (discussed in Part I) • dries the term of. the mortgage chosen give a comfortable margin of acceptable risk? (discussed (discussed in Part II) , • does the agreement allow the homebuyer prepayment prepayment privileges - usually 1.0% of principal on each anniversary date of the mortgage? Mr. Keller emphasizes emphasizes that this is an important-option, which can drastically reduce the overall cost of a home, if properly utilized. • what happens if you want to sell your home is the mortgage transferable; transferable; is there a penalty ■ clause for early discharge of tin» mortgage? • do you qualify for other "All these options should be discussed in detail with your lender." said Mr.' Keller. "At Victoria and Grey we encourage people to come in and talk to us before they make an offer to purchase a house, or even before they start seriously looking for a home." Another factor many • homebuyers are questioning is the frequency of payment, and the effect on the overall cost of owning a home over the life of the mortgage. "Weekly payment mortgages mortgages have received a Tot of attention," confirms Mr. Keller, "but large lenders would 'really be unable to go to such à system without eventually passing the enormous administrative costs on to the consumer." At Victoria and Grey, for example, there are 75,000 mortgages in force. That is 75,000 payments which have to be processed monthly; monthly; 900,000 yearly. If those mortgages allowed weekly payment, it would mean processing nearly 4 mÿlion- transactions per ye'ar. "If people want to achieve the spine result of paying off their mortgage more quickly, with little dollar iinpact per month, they can achieve that in other, more effective ways," says Mr. Keller. The following illustrates the point: A homebuyer who has decided he can afford $5Q0 per month, interest and principal, assumes a mortgage mortgage which carries for $450 per month: 12 payments («> 450 per month = $5,400 per year 1 &P Weekly payment schedules are arrived at by dividing the monthly payment by four (450 -,i 4 $112.50). That figure paid weekly looks like this: . 52 payments ha) <| 1 2.5.0 - $5,850 per yvai. Victoria quid Grey officials' higher annual payment made through the weekly payment calculation by 12 (months). In the example, $5,850 -p 12 @ $487.50. The homebuyer can elect to merely pay the slightly higher amount per month, saving time and cost of writing cheques, and keeping keeping the lender's administrative administrative costs down, v. .rile achieving the same end result. "An even more sensible option, particularly for the young homebuyer, is to open a special savings account account and regularly deposit the "extra payment", said Mr. Keller. "When the anniversary anniversary date arrives, the cash is available to make a single large payment, thus reducing reducing mortgage principal, yet the homeowner has not irrevocably committed those funds prior to the anniversary date. This could be quite important if an emergency arises", Mr. Keller added. Mr. Keller emphasized that most mortgage lenders, including including Victoria and Grey, welcome the chance to discuss discuss the many, and sometimes sometimes complicated, aspects of mortgages with new and existing homeowners, to help them arrive at mortgage mortgage agreements which best suit their particular financial circumstances. "A mortgage is a big commitment," commitment," stressed Mr. Keller, "and not one a borrower should rush into. Take the time to carefully consider your circumstances, and . talk to experts in the field" he counselled. "You'll never regret it if you do, but not doing it could give you and your family financial grief for a long time." For further information, and copies of other articles in this, series, contact, the Branch Manager at local Victoria and Grey Trust Company offices throughout throughout Ontario and Alberta. The Corporation of the TOWN OF NEWCASTLE Summer Swimming '83 AT THE FITNESS CENTRE PLEASURE SWIM SCHEDULE (effective July 4th to September 4th, 1983) Adult Swim Mondays, Wednesdays, Fridays Tuesdays, Thursdays & Weekends Early Bird Tuesdays & Thursdays Public Swim - Mondays Family Swim Over 50's Tuesdays Wednesdays Thursdays Fridays 1 Saturdays Sundays Saturdays Sundays Fridays 11:45 7:00 7:00 3:30 7:00 11:45 3:30 7:00 11:45 7:00 1:00 3:30 4:00 .1:00 3:30 a.m. p.m. a.m. p.m. p.m. a.m. p.m. p.m. a.m. p.m. p.m. p.m. p.m. p.m. p.m. • 1:15 p.m. - 9:00 p.m. - 8:30 a.m. - 5:30 p.m. ■ 9:00 p.m. ■ 1:15 p.m. 5:30 p.m, 9:00 p.m, 1:15 p.m. 9:00 p.m. 3:00 p.m. 5:00 p.m. 6:00 p.m. 3:00 p.m. 4:30 p.m. Fees: Adult ; Youth (3 - 18 yrs.) Infants (3 yrs. & younger) Senior Citizens Family Swim Parent, & Tot Sauna & Whirlpool - Adults Only - Senior Citizens $1.25 or 10 tickets for $10.00 $1.00 or 10 tickets for $ 8.00 NIL . $ .75,or 10 tickets for $ 6.00 $2.00 or 10 tickets for $16.00 $1.25 or 10 tickets for $10.00 , $1.25 or 10 tickets for $10.00 $ .75 or 10 tickets for $ 6.00 Pool Rental: • Pool (per hour) $26.50 + $5.25/hr. for lifeguard . Pool, Sauna & Whirlpool $36.75 + $5.25/hr. for Itfeguard Summer Swimming '83 AT THE tiRONO PARK POOL (effective July 4th to Aug. 19th, 1983) ( PLEASURE SWIM SCHEDULE Public Swim Mondays, Wednesdays, Thursdays Tuesdays & Fridays ' Saturdays, Sundays & Holidays 2:00 p.m. - 6:00 p.m. 2:00 p.m. - 5:00 p.m. 6:00 p'.m. - 8:00 p.m. 12:00 noon - 5:00 p.m. ■6:00 p.m. - 8:00 p.m. Pool Rental Fees: . , ■ Pool (per hour) $26.50 + $5.25/hr. for lifeguard Pool, Sauna & Whirlpool $36,75 + $5.25/hr. for lifeguard i ■ Public Swimming $ 1.25 all day ; i ' Season Pass (Single) $26.25, Season Pass (Famjiy) $52.50 Date of Publication:- June 29, 1983