- What factors determine the monthly mortgage payment?
The monthly mortgage payment is based on the amount of the down payment, the size of the mortgage loan, the interest rate, the length of the repayment term, the amortization and payment schedule.
- What is included in the monthly mortgage payment?
The monthly mortgage payment pays off principal and interest.
- What are accelerated weekly or bi-weekly payments?
If you really want to tackle your mortgage faster and save interest, it’s wise to go with what is called an accelerated bi-weekly or weekly payment option. It’s not rocket science, and in fact, it’s quite simple. Under the accelerated bi-weekly program, you’re making 13 mortgage payments over the year versus 12. We all know that anybody who’s getting paid bi-weekly gets paid every two weeks, so, if you make 26 mortgage payments and divide it by two, that’s 13 months. That extra mortgage payment definitely has an impact at reducing the principal more quickly.
Most mortgage lenders are very generous with allowing you to put extra money against your mortgage as long as the increments are as little as a hundred dollars. Nowadays lenders will even let you double up or make lump sum payments. You’ll want to check if these lump sum payments are restricted to an anniversary date or if they can happen any time throughout the mortgage term.
The Auxilium Team offers a complimentary consultation to start your home buying process; contact us today at 250-590-6520 (toll-free 1-855-590-6520). You can also visit us at 307 Goldstream Avenue during regular business hours. We can arrange an appointment evenings or weekends to work with you.
Auxilium Mortgage Corporation is based in Victoria, BC and works with clients locally and across Canada. The Auxilium team has over 100 years of combined financial experience and access to dozens of lenders to help you meet your goals.
This post reflects the best available information at the time of writing/last update. In order to ensure that you have the most up-to-date information, contact us to confirm the details for your specific situation.
Updated March 2018
This list originally appeared as part of 35 Questions to Ask When Buying a Home. See the entire updated list:
3 Questions to Ask When Buying a Home
7 Questions to Ask About House Hunting When Buying a Home
6 Questions to Ask About Financing When Buying a Home
4 Questions to Ask About Your Credit When Buying a Home
5 Questions to Ask About Working With a Mortgage Broker
2 Questions to Ask About Insurance When Buying a Home
5 Questions to Ask About Closing Details When Buying a Home