Why Homebuyers Should Go for Shorter Amortizations
January 6, 2016 | Posted by: Natalie Wellings
There are many different plans of attack when attempting to pay your mortgage off faster. In this article, from The National Post, the author argues that a shorter amortization is a good strategy. Equally as effective is keeping your amortization as long as possible and setting up automatic extra payments that have the overall effect of shortening your amortization period. The effect of making additional payments on your mortgage will lower the overall amortization and you always have the option of reverting back to the lower, longer amortized payment should life get in the way (illness, maternity leave, loss of employment etc). In my opinion, this is the best strategy as it gives you more freedom and options should your lifestyle change.
If you automatically pay extra every month, chances are you won't miss the extra money and you'll be on your way to becoming mortgage free sooner!