Comments on: The Difference Between Mortgage Amortization and Term https://www.moneywehave.com/the-difference-between-mortgage-amortization-and-term/ Personal Finance and Budget Travel for Canadians Sun, 24 Nov 2024 14:59:08 +0000 hourly 1 https://wordpress.org/?v=7.0 By: Barry Choi https://www.moneywehave.com/the-difference-between-mortgage-amortization-and-term/#comment-2799 Mon, 18 Jan 2016 14:33:10 +0000 https://www.moneywehave.com/?p=5705#comment-2799 In reply to Jaymee @ Smart Woman.

Jaymee,

I don’t own yet either, but I definitely used to think the same way. Before I told myself when I got a mortgage I would pay it down as quickly as possible, but with interest rates so low it makes sense to invest some money for the long term. With creative math, any home will seem affordable on a monthly basis.

]]> By: Jaymee @ Smart Woman https://www.moneywehave.com/the-difference-between-mortgage-amortization-and-term/#comment-2796 Mon, 18 Jan 2016 07:06:08 +0000 https://www.moneywehave.com/?p=5705#comment-2796 I remember when I was so gung-ho about buying a house because I wanted to “own my first property before 25 years of age” – I’m glad I came to my senses before signing for that house I almost bought last year. I can vouch for the fact that I was only looking at the short-term “how can I get into a house asap” and not so much what would happen in the next 5 or 10 years.

Now I’ve sat down with my advisor and went over my house buying plan. He agrees with my plan to buy but recommends not paying off my house as soon as possible (which was my game plan before). He recommends I put more money into my investments instead and pay off the house later. We went through the numbers and they completely make sense – understanding the risks of course!

Long story short – I’m glad I waited on buying a house. And I’m glad I’m learning about different strategies and approaches to home buying. 🙂

]]> By: Barry Choi https://www.moneywehave.com/the-difference-between-mortgage-amortization-and-term/#comment-2765 Fri, 08 Jan 2016 13:26:27 +0000 https://www.moneywehave.com/?p=5705#comment-2765 In reply to Ashley.

Ashley,

That’s still a pretty good rate. In the near future you won’t see 5 year fixed rates at less than 3% (still an incredible rate). Awesome job at paying down your mortgage.

]]> By: Ashley https://www.moneywehave.com/the-difference-between-mortgage-amortization-and-term/#comment-2764 Fri, 08 Jan 2016 13:24:30 +0000 https://www.moneywehave.com/?p=5705#comment-2764 I just clicked on the button to renew my term for 5 more years. It was painful to give up my current 1.9% rate to go to 2.7% but really, is that such a bad rate? No. Besides, with extra payments I’ve knocked almost 6 and a half years off my 25 year mortgage in 10 years, and hoping it’ll be even more by the time it’s gone.

]]> By: Barry Choi https://www.moneywehave.com/the-difference-between-mortgage-amortization-and-term/#comment-2748 Sun, 03 Jan 2016 06:00:39 +0000 https://www.moneywehave.com/?p=5705#comment-2748 In reply to Susan.

Susan,

Yes it’s pretty insane how such basic financial terms aren’t understood by the majority of people. I wrote this piece about mortgages since I kept getting asked about them. The thing is, if they’re buying a home, they should know this already.

]]> By: Susan https://www.moneywehave.com/the-difference-between-mortgage-amortization-and-term/#comment-2747 Sun, 03 Jan 2016 05:42:38 +0000 https://www.moneywehave.com/?p=5705#comment-2747 What amazes me is how little most people know about all things financial – mortgages, taxes, RRSPs, TFSAs, interest, leasing, withholding taxes vs actual taxes, etc. Etc. These are not taught in school and for many families the blind are leading the blind since the parents don’t understand these themselves. Kids should be taught how to reconcile a bank account, prepare a simple tax return (on paper so they can see how the numbers were work), reading and calculating from payroll tables, and leasing.

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