Global News, just came out with a great article on Renting vs Buying that is a very good read.  We have a website set up specifically for first time home buyers at RentStinks.ca that is set up to help anyone who is considering purchasing their first home.  They key is to be properly prepared and not pressured into your first purchased. I have a number of tools that can guide new buyers, so please don't hesitate to get in touch, as I am more than happy to help.

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by Chris O' Sullivan - cosullivan@mortgagwriters.ca

The answer to this question depends on one two things: One’s current financial situation and do you want to save on paying the interest part of the mortgage.

I will go over the different payment options available and provide a chart on how much a mortgage will cost you depending on the payment option you decide on.

The Monthly Mortgage Payment:

This is the most standard payment. You pay your mortgage once a month. This is the most expensive option, since you don’t save anything on interest fees. You will have 12 payments for the entire year.

Semi-Monthly Mortgage Payment:

This option requires two equal payments ( 50% on the monthly payment), which makes 24 payments for the entire year. This is a better option than the monthly payment. It will save you more on the interest payments.

Bi-Weekly Mortgage Payment:

This option requires the borrower to make mortgage payments every two weeks on the same day. You will pay a total of 26 payments for the year.  You make half the monthly payment every two weeks. So you will make 13 full payments for the entire year. This will save you a bit more on the interest then the semi-monthly option.

Accelerated Weekly Mortgage Payment:

This will give you slightly better interest rate savings then the accelerated bi-weekly payment option. You will make 52 payments per year. This results in an additional monthly payment for the year.

This chart will assume a mortgage of $200,000, for a 5 year fixed term at 3.39%, with amortization of 25 years.  Below are the different payment options and the savings associated with each from a monthly payment option.

 

Total Payments

Total Interest Paid

Time To Payoff Mortgage

Savings 

Monthly Mortgage Payment

$296,088

$96,088

300 months

(25 yrs.)

N/A

Semi-Monthly Mortgage Payment

$295,765

$95,765

300 Months (25 yrs.)

$323.00

Bi-Weekly Mortgage Payment

$283,606.59

$83,606.59

266 months

(22 yrs. and 2 months)   

$12,483.21

Weekly Mortgage Payment

$283,470.10

$83,470.10

266 months

(22yrs. And 2 months)

$12,619.71

 

This chart will assume a mortgage of $450,000, for a 5 year fixed term at 3.39%, with amortization of 25 years.  Below are the different payment options and the savings associated with each from a monthly payment option.

 

Total Payments

Total Interest Paid

Time To Payoff Mortgage

Savings 

Monthly Mortgage Payment

$666,200.36

$216,200.36

300 months

(25 yrs.)

N/A

Semi-Monthly Mortgage Payment

$665,471.25

$215,471.25

300 Months (25 yrs.)

$729.10

Bi-Weekly Mortgage Payment

$638,114.83

$188,114.83

266 months

(22 yrs. and 2 months)   

$28,065.52

Weekly Mortgage Payment

$637,804.92

$187,804.92

266 months

(22yrs. And 2 months)

$28,395.44

 

If you can, it is well worth to use a bi-weekly or weekly payment structure to pay down your mortgage.
Chris O'Sullivan
 
Chris O'Sullivan is a mortgage agent for The Mortgage Writers and can be reached at cosullivan@mortgagewriters.ca
 
 
 
  
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Categories:   | Abbeydale, Calgary Real Estate | Airdrie, Airdrie Real Estate | Alberta Housing Market | alberta housing market forecast 2012 | Alberta Housing Market, housing projections, cmhc | Alberta Housing Market, housing projections, cmhc, Calgary housing market, chestermere homes for sale | Alberta Land Tax | Android | April Market Update | April Market Updates for Calgary | Arbour Lake, Calgary Real Estate | Bowness, Calgary Real Estate | Bragg Creek, Bragg Creek Real Estate | Bridlewood, Calgary Real Estate | Calgary cash incentives | Calgary Economic Recovery | calgary economy | Calgary Economy, Calgary Housing Market, Calgary Real Estate, Chestermere Real Estate | Calgary Econonomy, Calgary Housing Market, Calgary Real Estate, Chestermere Real Estate | Calgary Grants | Calgary home market | Calgary Home Prices | Calgary home sales | Calgary Homes For Sale | Calgary Housing | Calgary Housing Market | Calgary Housing Market Outlook 2012 | calgary housing market statistics | Calgary Housing Market Update | Calgary Housing Stats | Calgary Housing Trend | Calgary Market Forecast | Calgary Market Outlook 2012 | Calgary Market Update | Calgary Open House | Calgary Properties | Calgary Real Estate | Calgary Real Estate Forecast | Calgary Real Estate Market | Calgary Real Estate Stats | Calgary Relocation | Canada Housing Market | Canada Mortgage Update | Cardston, Cardston Real Estate | Chestermere | Chestermere home for sale | Chestermere Homes | Chestermere Housing Market | Chestermere Open House | Chestermere Real Estate | Chestermere Real Estate Stats | Chestermere Realtor | Chestermere, Chestermere Real Estate | Cityscape, Calgary Real Estate | CMA, Market Analysis, Selling Price, Fair Market Value, Home Value, home price | CMHC | Connaught | Connaught, Calgary Real Estate | Country Hills | Country Hills, Calgary Real Estate | Coventry Hills, Calgary Real Estate | Deer Ridge, Calgary Real Estate | Deer Run, Calgary Real Estate | economic recovery | Economy | Evanston, Calgary Real Estate | Executive Home for Sale | Falconridge, Calgary Real Estate | Finance | First Time Home Buyers | foreclosure | Garrison Green | Garrison Green, Calgary Real Estate | Harvest Hills, Calgary Real Estate | Hawkwood, Calgary Real Estate | Hillhurst, Calgary Real Estate | Housing Trends | Inglewood, Calgary Real Estate | IPhone | January 2013 Market Update | Lakeside Home For Sale | Langdon | Langdon, Langdon Real Estate | Mahogany, Calgary Real Estate | Market Trends | Market Update | Market Value | Marlborough Park, Calgary Real Estate | Martindale, Calgary Real Estate | Mayland Heights, Calgary Real Estate | McKenzie Towne, Calgary Real Estate | MLS QR Code | MLS Search | MLS Search, Personal Real Estate Office, Real Estate, home search, compare homes, search for homes | Monterey Park, Calgary Real Estate | Mortgage | Mortgage Fraud | Mortgage Rates | Mortgage Registration | Mortgages | New Listing | Okotoks, Foothills Real Estate | Okotoks, Okotoks Real Estate | Open House | Pineridge, Calgary Real Estate | Pricing Your Home For Sale | QR Code | Real Estate | Real Estate App | Real Estate Forecast | Real Estate GPS QR Code | Real Estate Integrity | Real Estate QR Code | Real Estate, Chestermere Real Estate, Calgary, Buy, Sell, home | Recession | Redcarpet_Mountview, Calgary Real Estate | Rent vs Buy | Rental Property | Rental Property, Calgary Rental, First Time Home Buyers | Rosscarrock | Rosscarrock, Calgary Real Estate | Rural Rocky View MD, Rural Rocky View County Real Estate | Rural Rocky View MD, Rural Rocky View MD Real Estate | Rural Rocky View MD, Rural Rockyview County Real Estate | Rural Wheatland County, Rural Wheatland County Real Estate | Sage Hill, Calgary Real Estate | Secondary Suite | Sell Your Home | Selling Your Home | Shawnessy, Calgary Real Estate | Somerset | South Calgary, Calgary Real Estate | Southview, Calgary Real Estate | Spruce Cliff, Calgary Real Estate | Strathmore | Strathmore, Strathmore Real Estate | Suite | Sundance, Calgary Real Estate | Temple, Calgary Real Estate | Turtle Lake Real Estate | Tuscany, Calgary Real Estate | Victoria Park, Calgary Real Estate | Whitehorn | Whitehorn, Calgary Real Estate

Global News, just came out with a great article on Renting vs Buying that is a very good read.  We have a website set up specifically for first time home buyers at RentStinks.ca that is set up to help anyone who is considering purchasing their first home.  They key is to be properly prepared and not pressured into your first purchased. I have a number of tools that can guide new buyers, so please don't hesitate to get in touch, as I am more than happy to help.

Read full post

by Chris O' Sullivan - cosullivan@mortgagwriters.ca

The answer to this question depends on one two things: One’s current financial situation and do you want to save on paying the interest part of the mortgage.

I will go over the different payment options available and provide a chart on how much a mortgage will cost you depending on the payment option you decide on.

The Monthly Mortgage Payment:

This is the most standard payment. You pay your mortgage once a month. This is the most expensive option, since you don’t save anything on interest fees. You will have 12 payments for the entire year.

Semi-Monthly Mortgage Payment:

This option requires two equal payments ( 50% on the monthly payment), which makes 24 payments for the entire year. This is a better option than the monthly payment. It will save you more on the interest payments.

Bi-Weekly Mortgage Payment:

This option requires the borrower to make mortgage payments every two weeks on the same day. You will pay a total of 26 payments for the year.  You make half the monthly payment every two weeks. So you will make 13 full payments for the entire year. This will save you a bit more on the interest then the semi-monthly option.

Accelerated Weekly Mortgage Payment:

This will give you slightly better interest rate savings then the accelerated bi-weekly payment option. You will make 52 payments per year. This results in an additional monthly payment for the year.

This chart will assume a mortgage of $200,000, for a 5 year fixed term at 3.39%, with amortization of 25 years.  Below are the different payment options and the savings associated with each from a monthly payment option.

 

Total Payments

Total Interest Paid

Time To Payoff Mortgage

Savings 

Monthly Mortgage Payment

$296,088

$96,088

300 months

(25 yrs.)

N/A

Semi-Monthly Mortgage Payment

$295,765

$95,765

300 Months (25 yrs.)

$323.00

Bi-Weekly Mortgage Payment

$283,606.59

$83,606.59

266 months

(22 yrs. and 2 months)   

$12,483.21

Weekly Mortgage Payment

$283,470.10

$83,470.10

266 months

(22yrs. And 2 months)

$12,619.71

 

This chart will assume a mortgage of $450,000, for a 5 year fixed term at 3.39%, with amortization of 25 years.  Below are the different payment options and the savings associated with each from a monthly payment option.

 

Total Payments

Total Interest Paid

Time To Payoff Mortgage

Savings 

Monthly Mortgage Payment

$666,200.36

$216,200.36

300 months

(25 yrs.)

N/A

Semi-Monthly Mortgage Payment

$665,471.25

$215,471.25

300 Months (25 yrs.)

$729.10

Bi-Weekly Mortgage Payment

$638,114.83

$188,114.83

266 months

(22 yrs. and 2 months)   

$28,065.52

Weekly Mortgage Payment

$637,804.92

$187,804.92

266 months

(22yrs. And 2 months)

$28,395.44

 

If you can, it is well worth to use a bi-weekly or weekly payment structure to pay down your mortgage.
Chris O'Sullivan
 
Chris O'Sullivan is a mortgage agent for The Mortgage Writers and can be reached at cosullivan@mortgagewriters.ca
 
 
 
  
Read full post
Categories:   | Abbeydale, Calgary Real Estate | Airdrie, Airdrie Real Estate | Alberta Housing Market | alberta housing market forecast 2012 | Alberta Housing Market, housing projections, cmhc | Alberta Housing Market, housing projections, cmhc, Calgary housing market, chestermere homes for sale | Alberta Land Tax | Android | April Market Update | April Market Updates for Calgary | Arbour Lake, Calgary Real Estate | Bowness, Calgary Real Estate | Bragg Creek, Bragg Creek Real Estate | Bridlewood, Calgary Real Estate | Calgary cash incentives | Calgary Economic Recovery | calgary economy | Calgary Economy, Calgary Housing Market, Calgary Real Estate, Chestermere Real Estate | Calgary Econonomy, Calgary Housing Market, Calgary Real Estate, Chestermere Real Estate | Calgary Grants | Calgary home market | Calgary Home Prices | Calgary home sales | Calgary Homes For Sale | Calgary Housing | Calgary Housing Market | Calgary Housing Market Outlook 2012 | calgary housing market statistics | Calgary Housing Market Update | Calgary Housing Stats | Calgary Housing Trend | Calgary Market Forecast | Calgary Market Outlook 2012 | Calgary Market Update | Calgary Open House | Calgary Properties | Calgary Real Estate | Calgary Real Estate Forecast | Calgary Real Estate Market | Calgary Real Estate Stats | Calgary Relocation | Canada Housing Market | Canada Mortgage Update | Cardston, Cardston Real Estate | Chestermere | Chestermere home for sale | Chestermere Homes | Chestermere Housing Market | Chestermere Open House | Chestermere Real Estate | Chestermere Real Estate Stats | Chestermere Realtor | Chestermere, Chestermere Real Estate | Cityscape, Calgary Real Estate | CMA, Market Analysis, Selling Price, Fair Market Value, Home Value, home price | CMHC | Connaught | Connaught, Calgary Real Estate | Country Hills | Country Hills, Calgary Real Estate | Coventry Hills, Calgary Real Estate | Deer Ridge, Calgary Real Estate | Deer Run, Calgary Real Estate | economic recovery | Economy | Evanston, Calgary Real Estate | Executive Home for Sale | Falconridge, Calgary Real Estate | Finance | First Time Home Buyers | foreclosure | Garrison Green | Garrison Green, Calgary Real Estate | Harvest Hills, Calgary Real Estate | Hawkwood, Calgary Real Estate | Hillhurst, Calgary Real Estate | Housing Trends | Inglewood, Calgary Real Estate | IPhone | January 2013 Market Update | Lakeside Home For Sale | Langdon | Langdon, Langdon Real Estate | Mahogany, Calgary Real Estate | Market Trends | Market Update | Market Value | Marlborough Park, Calgary Real Estate | Martindale, Calgary Real Estate | Mayland Heights, Calgary Real Estate | McKenzie Towne, Calgary Real Estate | MLS QR Code | MLS Search | MLS Search, Personal Real Estate Office, Real Estate, home search, compare homes, search for homes | Monterey Park, Calgary Real Estate | Mortgage | Mortgage Fraud | Mortgage Rates | Mortgage Registration | Mortgages | New Listing | Okotoks, Foothills Real Estate | Okotoks, Okotoks Real Estate | Open House | Pineridge, Calgary Real Estate | Pricing Your Home For Sale | QR Code | Real Estate | Real Estate App | Real Estate Forecast | Real Estate GPS QR Code | Real Estate Integrity | Real Estate QR Code | Real Estate, Chestermere Real Estate, Calgary, Buy, Sell, home | Recession | Redcarpet_Mountview, Calgary Real Estate | Rent vs Buy | Rental Property | Rental Property, Calgary Rental, First Time Home Buyers | Rosscarrock | Rosscarrock, Calgary Real Estate | Rural Rocky View MD, Rural Rocky View County Real Estate | Rural Rocky View MD, Rural Rocky View MD Real Estate | Rural Rocky View MD, Rural Rockyview County Real Estate | Rural Wheatland County, Rural Wheatland County Real Estate | Sage Hill, Calgary Real Estate | Secondary Suite | Sell Your Home | Selling Your Home | Shawnessy, Calgary Real Estate | Somerset | South Calgary, Calgary Real Estate | Southview, Calgary Real Estate | Spruce Cliff, Calgary Real Estate | Strathmore | Strathmore, Strathmore Real Estate | Suite | Sundance, Calgary Real Estate | Temple, Calgary Real Estate | Turtle Lake Real Estate | Tuscany, Calgary Real Estate | Victoria Park, Calgary Real Estate | Whitehorn | Whitehorn, Calgary Real Estate
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