Benefits of Paying off your Mortgage Early

Even when you get the best deal possible on your mortgage, having those monthly payments loom over your head can be enough to stress out even the most financially sound.

So what happens if you find yourself in a situation with more money than you expected at this point in your life? Should you invest it, spend it, or pay off your mortgage?

Early mortgage repayment is not for everyone, or every situation. However, if you can afford early repayment, there are several benefits for your life and financial situation.

1. 1. Net Income Increase
A common reason why people are delaying their repayments is the low interest rate on their mortgage. When your rate is only slightly above inflation, it’s extremely attractive to keep refinancing it indefinitely and use that money for investing.

There’s one problem though: the reason that mortgage rates are so low is because investment returns in general are low.

Investors across the world are finding that there are few profitable places to put their money these days. Even riskier investments often barely return enough to keep step with inflation.

Take a good look at your investments. How many of them produce a return equal to the cost of your mortgage, at no risk? If you look at your mortgage repayment as a form of investment, you might see that putting money into it has a greater and more reliable effect on your income than your investments.


2. 2. Fewer Fees
Refinancing a mortgage requires a payment of closing fees. Although refinancing at a lower rate can be attractive, the fees add up over a lifetime.


3. 3. Simple Finances
A general rule in life is that more investments means more work. Investing in property, stocks, or even RRSPs can eat up your time by forcing you to go to meetings, watch the markets, and manage your portfolio.

Paying your mortgage off can increase your income and free up your time.


4. 4. Payment Freedom
Changing careers while under a mortgage is extremely stressful. It is difficult to risk striking out on your own when you have debt to service. Freeing yourself of monthly payments can give you the freedom to pursue your dreams.

Some of these benefits are financial, some are psychological. Both types can greatly increase your quality of life.

source: northwoodmortgage.com

Good Customer Service Makes Banking Consumers Feel Financially Confident

According to a survey by TD Bank, 60% of consumers who are happy with their bank say they they have low- or no financial stress, and more than half are optimistic about their financial future. Moreover, consumers who define themselves as happy with their bank spend 72 minutes less (7.3 hours vs. 8.5 hours) each week worrying about their financial situation compared to those who say they are not happy with their bank.

“All banks are not the same when it comes to the service they provide. Research shows those who feel valued by their bank are more likely to be happy with their financial state,” said Ryan Bailey, EVP/Head of Deposit Products at TD Bank.

TD Bank surveyed more than 1,500 consumers all along the east coast — from Maine to Florida — to better understand consumers’ banking experiences, their financial stress, as well as their financial outlook.

Other key findings from the survey include:

• Three-out-of-four respondents aged 18-34 noted friendly service as a key characteristic to an ideal banking relationship compared to 82% of ages 35-54 and 89% of those 55+.
• When examining the nature of banking interactions, the majority of consumers are using bank branches (73%) followed by phone (30%) and online (13%)
• Not surprisingly, those 18-34 are most likely to go online, however 65% still use bank branches.
• Top financial goals among those polled included saving (56%) followed by paying off debt (38%) and planning for retirement (36%).
• Among those aged 35-54, saving and investing more (63%) and planning for retirement (49%) were top priorities.

Based on the survey, Bailey concluded that “fast and simple” customer service is the key to influencing customer feelings of satisfaction. For customers to feel valued by their financial institution, the most critical components most often cited include friendly service (82%), knowledgeable advice (62%) and being a reliable financial resource (60%).

Bailey says banks have an opportunity to improve customers’ financial lives beyond the functional aspects of transactions. He says consumers will have positive brand associations with their primary financial provider if banks and credit unions would help them make banking easier.

Financial marketers should seek to establish a positive connection with consumers and foster trust, because people’s feelings of satisfaction towards their bank can give them a solid foundation to build a more confident and secure financial future, Baily explains.

The study was conducted from January 23-28, 2013. The sample size of 1,520 has a margin of error of +/- 2.5%. The survey was hosted by global research company Angus Reid Public Opinion.

 source: thefinancialbrand.com

Refinancing and Home Mortgage Schemes

You will be amazed to find out that there are numerous ways to pay out your debt more easily than you have ever imagined. This will make your financial life secure too. You will learn many new tricks to make your life financially secure and your finances stable. Having a safe and secure financial life has a great say in long term goals of your life. You need to have stable finances if you want to achieve a safe future. Mortgage insurance loans will help you to take loans which are beneficial, require you to pay less interest but also play a great role in making you rich. Sometimes when you take a loan its heavy interest amount is like a burden. Every month it leaves a big hole in your pocket. This site will teach you all the clever tricks that you require in taking any kind of bank loan or home mortgages. It aims to instill in you certain ideas that will help you take you financial decisions more judiciously.
Home mortgage loans are pretty common. As we all know that the present economic scenario is quite dynamic. It is ever changing and the risks are increasing day by day. You cannot predict what the market will be like, the next day, with hundred percent sureties. At these critical times the one major thing to have your own, is a house. Everybody does not have the finances to buy a house on their own, even if they have sufficient finances it is advisable that the entire money is not spent on it. It is cleverer to take a home mortgage loan and buy your own house. mortgage-insurance-loans will provide you great information on what points to keep in mind while taking a home mortgage loan.
You should be well aware of your financial situation and take a loan whose interest you won't find hard to pay off. You do not want these interests to become a monthly burden for you. This site will teach you many clever tricks which will help you to pay your home mortgage debts very easily and the interest amount will be less too. With a little use of brains and with a little help from this site you will be able to come up with great plans which will help you in refinancing homes and home mortgage loans. Various schemes will be defined with their respective pros and cons to make it easy for you to understand.

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