Tips To Paying Your Mortgage Down Faster

Everyone knows they should make extra payments on their mortgage, but life tends to get in the way and make it a low priority on the overall budget.  Most of us will have something they could pay towards the mortgage, yet it doesn’t seem like much compared to the balance, so we spend it on other things…and let’s face it, paying down your mortgage isn’t sexy!

So is it important?  Let me show you an example of the impact of even small extra payments on your mortgage.  For example on a $250,000 mortgage over 30 years at 3.99%, 2 years into the mortgage if you were to start making $100 extra payments alone, you would knock 3.7 years off your mortgage and save $23,468!

So how do make this happen?

One of the easiest ways is to have your Bank or Credit Union deduct a small amount from your pay and have it automatically added to your mortgage or a savings account.  This makes it easier than having to remember every time you get paid to make that extra payment.  If your mortgage is with another institution, you will likely have to use the Savings account to save it up and then contact them to have the money transferred to the mortgage.  Most lenders can take out the extra payment automatically from the account your normal payments come out of.
The other way is to ask the lender to increase your payment amount by $x amount…obviously this is a more permanent solution.

What about Biweekly Payments, or Weekly Payments?
The sooner you make your payment the better.  As well, by paying in an accelerated manner, more money is being paid onto the mortgage, reducing your principal and interest costs.  For example:
$1,000 x 12 (monthly payments) = $12,000/year
$500 x 26 (biweekly accelerated) = $13,000/year
$250 x 52 (weekly accelerated) = $13,000/year
If you can manage this, it makes a significant impact on your mortgage!
Here we see just changing from Monthly to Biweekly accelerated alone knocks 4.1 years off of a 30 year mortgage!

Please note!  Some Bank’s offer weekly & Biweekly payment options which are not accelerated!!  This is useless, as it does not reduce your principal any more than Monthly payments…beware!
Other ways to pay down your mortgage faster!

•    Use your tax return to pay down your mortgage…this can make a big impact on your mortgage over the long term!
•    When you get a pay increase, increase the payment on your mortgage by the same amount.
•    If you receive any “extra” payment or gifts, put them on your mortgage asap!
•    Instead of gifts or presents on your Birthday, your spouse’s Birthday etc, pay extra down…a free & clear home is a much better gift!
•    Check with your lender consistently and ask for a new Amortization Schedule based on your new balance and payments…when you start to see the end date is getting closer (What we call Mortgage Freedom Day!) you will be able to focus on it more.

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.

Should brokers in these markets be worried?

Desjardins Group Economic Studies released a statement on Tuesday declaring the Canadian housing market is less affordable than the average affordability of the last 25 years, citing the average home prices across the country are eclipsing household income – due, in part, by a rush to buy prior to interest rate hikes.

Mortgage rates during the summer hurried buyers; many took action out of fear that mortgage rates would climb even higher,” the statement said. “Even if the coming months bring more increases; they won't be enough to trigger a significant dip in affordability.”

Most markets, however, are still affordable… outside Quebec and the Toronto, that is.
“Despite a decline in nearly all Ontario CMAs, most markets are still affordable. Toronto is an exception, where the average home price is $527,821, well above that observed in other agglomerations in the province,” the report stated. “The Desjardins Affordability Index is only slightly under the historical average in Calgary, despite relatively high home prices ($438,793 in the third quarter).”

And although housing prices may be lower in hot Quebec markets, they are still considered less affordable than their more expensive counterparts in BC; due to the average income disparity.

“Sherbrooke and Quebec City rank alongside Vancouver as some of the least affordable agglomerations in the country,” the report said. “Even though housing prices are much lower than on the west coast, incomes in these two CMAs are considerably lower, making home purchases more difficult.”

However, the Quebec-based financial services conglomerate reports its home province is experiencing a teeter-totter of sorts; with a lowering in prices in some markets being cancelled out by rising prices in others.

“Rising prices are losing steam in the Quebec City market while prices in Montreal are starting to edge down,” according to the report. “Prices continue to rise, however, for single-family homes, whose market is balanced, overall. Housing prices continued to climb in Gatineau, Sherbrooke, Saguenay and Trois-Rivières, affordability thus deteriorated in the third quarter.”

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.

How to Protect Yourself from Overzealous Debt Collectors: Know Your Rights

A couple of weeks back, a debt collection agency based in Glendale, Calif., agreed to pay $1 million to settle complaints from the Federal Trade Commission over its business practices. The agency, which went by the name “National Attorney Collection Practices,” had been harassing delinquent borrowers with debt collection notices bearing an illustration of Uncle Sam’s fist upending some hapless soul and “shaking him down” for loose change.

The harassment didn't end there.
Targeting Spanish-speaking debtors and lower-income consumers who’d fallen behind on loans to payday lending operations, “National Attorney” inundated debtors with phone calls, postal mailings, and text messages to their cellphones that: 

• falsely represented that its notices were coming from attorneys 
• "unlawfully … threatened legal action, arrest, imprisonment, or garnishment" if debtors didn’t pay up 
• and failed to include necessary “disclosures” advising debtors of their legal rights. 

In some cases, the FTC accused National Attorney of even sharing details about consumers’ debts with their friends, family, and co-workers, apparently in an attempt to pressure the consumers into paying. And to top it all off, the FTC says that National Attorney “refused to provide their business address or validation letters to consumers, thereby depriving consumers of the right to send cease-and-desist letters or to dispute alleged debts.”Summing up its charges, the FTC alleged that National Attorney “engaged in deceptive and unfair practices in almost every facet of their dealings with these consumers” — and fined the company $1 million.


Know Your Rights
Of course, the FTC can’t step in to stop every debt collector from breaking the law — at least not in real time.So what can you do to protect your rights, and prevent companies like National Attorney Collection Practices from taking advantage of you when the FTC’s not looking? Well, the first step is knowing what your rights are.Online consumer complaint service Scambook.com cites at least four main rights you have to protect yourself:

• Keep work and home separate: National Attorneys crossed a big red line when it tried to collect debts from consumers at their place of work. Tell debt collectors not to contact you at work — ever. 
• Let’s keep this between you and me: Even legitimate attempts to collect a debt are matters to be discussed between the lender and the debtor. If you find out that a debt collection agency has contacted your friends or family — or anyone else — about your debt, tell them to stop and then file a complaint. 
• You catch more flies, and fewer FTC lawsuits, with honey:What constitutes “harassment” is often going to be in the eye of the beholder, but Scambook says that once communication from a debt collector has risen to the level of harassment, it’s no longer kosher. Tell them to knock it off. 
• Support your local post office: Technology is a marvelous invention. But even so, debt collectors have no right to harass consumers over the phone and by text, by day and by night. If you are the subject of such harassment, tell them you want all future communication to be conducted by mail. This is a request they must honor. 

Also keep on the lookout for other instances where debt collectors are playing fast and loose with the rules. To name just a few violations, the FTC called out National Attorney for:

• Failing to disclose in the very first text message that the company was a debt collector trying to collect a debt. 
• Failing to provide details on the supposed debt the company was attempting to collect, and failing to inform the consumer of his or her right to dispute the debt’s validity. 
• Including statements on the outside of the envelopes on postal mailings, noting that the contents relate to an attempt to collect a debt. Because these envelopes could be seen by anyone, that’s a violation of the rule against informing third parties about a consumer’s debt situation — and it’s a no-no. 

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.

3 Helpful Tips On Debt Consolidation

If your debts have become uncontrollable and you are serious to get out of this financial instability, you must go for debt consolidation. With the help of debt consolidation all your multiple unmanageable debts will be consolidated into a single debt. After consolidating your debts, you also do not need to face the hassle of paying off your creditors separately. All your various creditors are paid off with a single monthly payment that you make to your consolidation company. Thus, there are various benefits of consolidating your debts. However, you must be aware that in order to have a successful debt consolidation, you need to know certain tactics. This article provides you with some tips on debt consolidation that may help you out.

Debt Consolidation Tips

Here are some tips on debt consolidation you need to know before you go for consolidating your debts with the help of a debt consolidation company.

• Reputable company - Before you choose a debt consolidation company, make sure to have a thorough research on the debt consolidation company that you want to go for. Research well online about the company and find out if it is a reputable one. All debt consolidation programs are not equal. Shop thoroughly and this in turn will help you get the best deal that suits your needs. Investigate not only whether they are offering you a low fees or not but also how long the company has been in the business, their experience and reputation.

• Non-profit companies - Non-profit organization may offer you much lower fees but you must keep in mind that non-profit doesn't mean that they are eager to help you out with your financial situation. Some also make fake claims to be a non-profit company in order to attract you. Thus, you need to be cautious about them.

• All debts do not need consolidation - All debts are not similar and may not even need consolidation. Thus, do not unnecessarily consolidate them. Analyze each debt separately. You must read the terms and conditions for each of your debt carefully. Estimate the APR and total cost of loan with help of an online loan amortization calculator. If you find out that your existing unsecured debt is cheaper than the consolidation loan that is being provided to you, it is better to avoid consolidating it.

Apart from these tips mentioned above, you must also figure out the total cost of your debt consolidation loan. Securing a low interest rate provides you with the main benefit of consolidating. Thus, make sure to utilize these tips on debt consolidation if you want to secure a successful consolidation.

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.

Eight Facts About Debt Consolidation

You are scared to look at your checkbook balance. You avoid opening bills. You are late on making payments to creditors, and paying high late fees and interest charges. If this sounds familiar, you might be considering debt consolidation. Essentially, debt consolidation combines all of your debts into one loan so you owe only one creditor. This idea might sound appealing, but it has its disadvantages as well as advantages. To determine if debt consolidation makes sense for you, take a look at these facts.

Fact #1: Debt Consolidation Alternatives Exist

There are several ways available to obtain funding to consolidate, and pay off, debts. One of them involves working with a debt consolidation firm. But individuals can consolidate their debts on their own, too, and pay off debt.

Fact #2: Debt Consolidation Is Not Right for Everyone

Debt consolidation works best for those who are able to pay bills but find it difficult to juggle multiple bills or remember payment due dates. For those struggling to pay bills at all, or who have bad credit, many debt consolidation options may not present the best options. Those individuals can talk with a debt relief counselor to figure out alternatives.

Fact #3: You Could Lose Your Home

Some people look to refinancing or borrowing against their homes as a route toward debt consolidation. Refinancing and taking cash out at closing can help pay down high-interest debt, and can be tax-deductible, but carries risk. Make sure that there is no possibility of missing a payment, because you don’t want to face a foreclosure because you transferred too much unsecured debt to secured debt. (Unsecured debt is not backed by any type of collateral or asset, and includes debt from credit cards, medical expenses and utility bills.)

With a home equity loan or line of credit, you borrow against your home’s equity in order to take out a loan to pay off creditors. However, in order to secure this type of loan, you have to put up your house as collateral. Essentially, you are taking out a second mortgage on your home. This means you could lose your home to foreclosure if you are unable to make payments. Plus, if your home’s value drops, you may not be able to pay back all the money you owe if you need to sell your home.

Fact #4: A Personal Loan Can Be Costly

If you are not a homeowner or do not want to risk your home, you may be able to take out a personal loan to pay off creditors; this, too, is a form of debt consolidation. This option requires you to have a strong enough credit rating to qualify for a good interest rate without any collateral. The problem is that it is difficult to get a personal loan with a low enough interest rate. Often, you may be better off just continuing to pay your creditors.

Fact #5: Using Another Credit Card Is Risky

A popular way to consolidate credit card debt is to transfer debt to a zero- or low-interest credit card. If you have good credit, this may be possible, but remember that the great rate will not last forever. Make sure you know when the introductory offer expires and what the new rate will be. Keep in mind that this rate will increase if you miss a payment or are late. Most importantly, do not continue to charge on your other cards once you have consolidated your debt. And do not use the new card to make new purchases.

Fact #6: Debt Consolidation Services Do Not Eliminate Debt

Debt consolidation services ask consumers to make one monthly payment, which then is used to pay creditors. Consumers pay back 100 percent of the debt, plus interest. If the problem is too many accounts with too-high minimum payments at crippling interest rates, these services may offer a solution. They can be helpful to people who are sure they can change their habits, so that they can focus on just one interest rate and one payment.

However, these loans are usually secured by the borrower’s property, such as a home or car, which puts those items at risk if the borrower cannot pay. Fees can be high. Many services have poor histories and reputations. Those working with a debt consolidator will likely sacrifice the freedom to open and use additional credit lines and, in many cases, their credit profiles. In addition, you can only consolidate unsecured debt.

Fact #7: Consolidating Debt May Cost You More in the Long Run

A debt consolidation loan – whether from a debt consolidation service or other – often gives you additional time to repay the loan. This might sound good. In reality, this means that you could pay more interest over the life of the loan even if you have a lower interest rate and make lower payments than when you started. Also, you could face costly penalties and see your interest rate increase if you are late with a payment, or miss one.

Debt consolidation can simplify on-time payments for some people. But it does not address issues like overspending and poor budgeting – issues that, for many people, created the original debt problem. If you choose debt consolidation, you must also turn over a new leaf and avoid adding to the mountain of debt, or you risk doubling your debt instead of eliminating it. Either way, think carefully before opting for debt consolidation.

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.

Bring Your Credit Ratings Up With These Tips

It is entirely possible to fix your credit problems. It might not be the easiest thing you've ever done, but we've compiled some tips to help the process go smoothly and to offer some peace of mind. Even if your current situation seems overwhelming, there are helpful options that you may not have explored. Take a look below for some new ideas and plans of action.

Order a free credit report and comb it for any errors there may be. Making sure your credit reports are accurate is the easiest way to repair your credit since you put in relatively little time and energy for significant score improvements. You can order your credit report through companies like Equifax for free.

With the new credit card laws in place, banks must now decline your card in the event of a possible overdraft. They will most likely try to get you to opt out of this, claiming that it is a service they provide to approve the purchase anyways, and then charge you a small fee. These fees are high. You will be much better off getting declined and using a different bank account or credit card for your purchase, than paying their fees.

An important tip to consider when working to repair your credit, is to check with a family member or friend first, when borrowing money to pay off debt. While this might take more courage to do, in the long run it will be more beneficial to you, as you will be paying money to a person you know, instead of a corporation.

We hope that you've found these tips helpful and motivating. Credit problems can take quite a toll on your peace of mind, but developing a plan will help get you back on track. Now you can take a deep breath and begin taking the first steps. Take heart because you are now on your way to lightening your credit burden.

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.

Give Yourself Better Credit With This Advice

If you are waiting around, waiting for your credit to fix itself, that is never going to happen. The ostrich effect, putting your head in the sand, will only result in a low score and a poor credit report for the rest of your life. Keep reading for ways that you can be proactive in turning your credit around.

Be careful about which collection accounts you pay off. With the current way the credit reporting system is structured, paying off a collection agency may actually lower your score because the date of last activity will be reset. A paid collection has no less of an impact on your score than an open collection. This resetting of the date of last activity also means the seven year reporting clock will restart. If you can wait out a collection agency, do it.

You can review your credit report for free annually from the three credit bureaus. Use these reports to make sure that all information on them is correct. Errors are not uncommon and no one will notice it or fix it other than you. Having the wrong information on your credit can damage your score, or cause you to be denied for a loan.

If you have credit cards, make sure you're paying off the entire balance at the end of the month. This will help keep you from getting into a spiral of debt. If you let your credit card bills start piling up, it becomes nearly impossible to pay them all off.

Bringing the balance on your credit cards below 50 percent of your limit will help improve your credit. Lenders often look to see how much credit you use compared to what the limit is on your card. Ideally, it should be between 30 and 50 percent. Remember, lowering the amount of interest you pay is not the overall goal; you want to improve your credit rating.

It is important to remember that repairing your credit history is very similar to losing weight. Like weight loss, it takes a lot of time and effort and there are no quick fixes. Just like you have to resist the temptation of high-calorie foods to lose weight, you must resist using credit cards when trying to repair your credit.

You don't have to be a financial wizard to have a good credit score. It isn't rocket science and there is a lot that you can do starting today to raise your score and put positive things on your report. All you need to do is follow the tips that you just read from this article and you will be well on your way.

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.

Poor Credit? Try These Great Credit Repair Tips!

Is your credit report not quite as good as you would like it to be? You can fix that and make it look great, in just a matter of time. Follow our tips and you will see just how easy it is for you to repair your credit report.

Pay every bill and pay it on time. If you don't have the money, lean on friends and family to help if you can. It takes a long time to recover from even one late or missed payment. Above all of your bills, keep your credit cards and loans paid and on time.

Should you find yourself needed to declare bankruptcy, do so sooner rather than later. Anything you do to try to repair your credit before, in this scenario, inevitable bankruptcy will be futile since bankruptcy will cripple your credit score. First, you must declare bankruptcy, then begin to repair your credit.

Order a free credit report and comb it for any errors there may be. Making sure your credit reports are accurate is the easiest way to repair your credit since you put in relatively little time and energy for significant score improvements. You can order your credit report through companies like Equifax for free.

If your debts are overwhelming you and are unable to get creditors to work with you, consider consumer credit counseling. Consumer credit counseling will work with you and your creditors to help you set-up a payment plan that works. They will also work with your creditors to lower your interest rates.

As you can see, credit repair is possible and you are now ready to take your first steps in getting the credit report that you deserve. Once you complete your credit repair journey, you will be able to borrow the money you need to get a credit card or even, buy a new car.

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.