The Goal is to Pay Down the Mortgage

When someone takes out a mortgage from a bank or another lending institution the lender will sit down with the borrower and they will layout for them the amount of periodic payments they feel is correct for the life of the loan. So for example, with a 5 year fixed rate mortgage the minimum payment might be bi-weekly and a little larger than what one might find with a 10 year mortgage. Each of these periodic payments (bi-weekly, monthly, etc.) must fully cover the interest and also partly pay-off a proportion of the principal for the mortgage in order for that mortgage to be in the amortization process and to eventually amortize completely. This is your ultimate goal as a mortgage borrower to eventually pay off this loan, or for the sake of this article, amortize your mortgage and end the term of the loan; making you a much happier and much less in debt person.

Mortgage Amortization

The whole process of amortization can get a little complicated and might be hard for one to understand all of the intricacies of amortization accounting on the whole without the help of a mortgage broker. However, the one thing that mortgagees need to know is that the mortgage amortization process starts off slowly. In fact, in the earlier years of your loan the bulk of your payments will mostly be applied to paying off interest with only a small amount going towards paying off the principal. Then over time as the principal itself gets paid down the interest will therefore decline and then a result of this is that more of your mortgage payments go towards paying off the principal. Resulting in greater mortgage amortization as time goes on and also increasing your equity in the house.

What is a Mortgage Agent?

Well, a mortgage agent (aka a mortgage broker) is a mortgage professional whose job it is to understand mortgages in and out and to match the proper mortgage with a customer’s needs. A mortgage agent will work to understand you and to match your mortgage needs, seeking out the best mortgage option for your situation, and they work to guide you through the lending process; a huge bonus for those first time home buyers and mortgage recipients.

A mortgage broker does not work for a specific mortgage lending institution or bank. Instead a mortgage agent is an independent person/business member who has access to up to the minute loan rates for a wide variety of lending institutions allowing them to literally find the best mortgage deal for you from a number of lenders.

In the past mortgage agents/brokers were considered more of a taboo resource only used by people with poor credit history. However, now times have changed and many Canadians are learning that they can benefit greatly from the professional touch of a mortgage agent.

When looking at the DOLLARS remember that a great investment advisor can help to make you thousands of dollars but also remember that a great mortgage agent WILL save you thousands of dollars by helping you get the best deal on your mortgage.

So when it comes to your mortgage be smart and realize that this is a form of investment and just like when it comes to the rest of your portfolio don’t be afraid to trust a mortgage professional like a mortgage agent just like you would any other investment advisor to help you make the right choice, the best choice.