1. Buying a home with a 5% down payment is available to everyone. Contrary to popular belief, you don’t Home Buyer, this is available to anyone as long as you qualify. In theory, you could turn your current home property and buy another home with only a 5% down payment. Newer rules state that any home purchase 10% down payment. ie. 700k home purchase price. 500k @ 5% down payment = 25k and 200k @ 10% + $20k = $45k down payment required.
2. You can even buy a home with 0% down. Assuming you qualify, you’re allowed to borrow the minimum payment from your LOC, Credit Card, Installment Loan, etc, and use it to buy a property. Keep in mind, factor in the monthly payments associated with the borrowed funds.
3. You could knock 2 years and 8 months off your mortgage by simply changing your payment frequency example, if your current mortgage payment is every 15 days you would just change it to every 14 days. once a month, just divide that payment by 2 and make that payment every 14 days. I assumed a 25 year this example.
4. The potential mortgage penalty for a fixed-rate mortgage can be 4 to 8 times higher than a variable. Variable-rate mortgages come with a predictable 3-month interest penalty no matter if you break it at rate penalties are the higher of 3-months interest or IRD (Interest rate differential). They usually end up bank/lender has their own formula for calculating this. Both variable and fixed rates have their pros and advantage is the potential lower penalty which equals flexibility.
5. The cost of a daily fancy coffee could take 2.5 years off your mortgage. For example, if you have a increase your mortgage payment by $5/day instead of indulging in a fancy coffee (I’m all for this by the $20,000 of interest over the life of your mortgage.