Add value and peace of mind to your mortgage

When you’re looking for a mortgage, getting a good rate is an important consideration. Before you jump at the ‘lowest offer’ though, you will want to look at what else comes with your mortgage. Flexibility, service and special features can add value — and peace of mind. Today, financial institutions offer a number of options on your mortgage:

Prepayment: Most financial institutions allow you to pay off a lump sum of your mortgage every year. Usually this is a percentage of the original amount you borrowed. This can be a valuable benefit if you receive a large amount of money — such as a yearend bonus or an inheritance —during the term of your mortgage.

Varying your Payments: Sometimes you may want to increase your regular payment — because you got a raise or a new job. Or you may want to change your payment frequency to match your new pay period. Check with your financial institution to see what options are available, and choose the one that best suits your cash flow and lifestyle.

Paying Down your Mortgage Faster: There are a number of ways you can pay off your mortgage in less than the usual 25-year period. Making an additional monthly payment, for example, or rounding up your payment by a small amount can cut years off your amortization period. It also brings you big savings in interest.

Consider All Your Lending Needs: Ask your financial institution what options are available to address all your lending needs. Mortgages and loans can work together to provide you with the financial certainty of a mortgage along with the flexibility of a line of credit.

The best way to sort through your options is to discuss them with your financial institution. Developing a relationship with a personal banker who knows your needs will help you choose the mortgage that’s right for you.