Lower Your Monthly Mortgage Payments
Mortgage Amortization is the length of time it will take to pay off the entire Mortgage at a given rate with a defined payment schedule. It’s typically 25 years but can also be 30 years. A longer Amortization means lower monthly payments, as payments are spread out over more years. However, it also means paying more interest over the life of the Mortgage.
During the Amortization Period, borrowers will have several Mortgage Contracts, with the interest rate defined by each Mortgage Term. The Mortgage Term is the length of time the Lender and you commit to the interest rate and associated Mortgage Term conditions. It’s a portion of time within the Amortization Period. At the end of each Term, the Mortgage will need to be renewed or paid off.
By extending the Amortization Period when a Mortgage is renewed, the balance remaining on the loan can be repaid over a longer period, which would create a lower monthly payment.
Speak with your Lender about Amortization options before a Mortgage renewal.
Our Experience Is Your Advantage!
If you are considering buying or selling a home and would like advice or more information, please contact me for a no-obligation consultation.
Call Lynne Blott at 416-540-7307 or e-mail at lynne@lynneblott.com
