Protect the Equity in Your Home

With real estate values having declined by as much as 20%, some Albertan home owners are finding themselves carrying mortgages that are equal to and in some cases even larger then their property values. In this type of scenario it is very important for home owners to bring down the principal portion of their mortgage as fast as possible in order to create some equity in their homes in order to build a nest egg or even refinancing opportunities for the future. There are many strategies that home owners can use to quickly and effectively bring down the size of their mortgages. Below, we will outline a few simple strategies that can pay dividends for years to come.

1. Increase the frequency of your payments
When choosing a payment scheme, make accelerated bi-weekly payments in order to get a "free" principal reduction which would be equivalent to one full mortgage payment every year, painlessly.

2. As income rises, raise your mortgage payments.
While disposable income is fun to spend, putting it towards your mortgage will save you a lot of money in interest payments which will be even more fun to spend in the future.

3. Round your payments up, instead of down.
Over time, by making even extra nominal payments of $20 to the principal, the amount of interest that you will be saving yourself from will amaze you.

4. If mortgage rates fall, don't reduce you payment scheme
If so far, you the payment amount has not been an issue of concern, then there is no benefit in reducing the payment amount. However there is a downside to reducing your payment being that interest payments will grow.

By taking advantage of these easy to use options available in most mortgages (as well as some other simple strategies)arranged by the mortgage professionals at Alberta Mortgage, home owners can save themselves hundreds and even thousands of dollars in interest on their mortgages. In addition to these simple strategies, with the help of one of a qualified mortgage professional at Alberta Mortgage you can save tens of thousands of dollars in interest without making any significant changes to your existing spending patterns. To find out more, call Anuj Gupta, AMP, BComm, Mortgage Associate of Alberta Mortgage at 780-479-2222 ext 14, or visit www.albertamortgagecentre.com.

Fixed Mortgage Interest Rates Offering Great Opportunity

Five year fixed mortgage interest rates in Canada have fallen to near record lows in 2009. With fixed mortgage interest rates now having fallen as low as 3.99% (subject to certain terms and conditions), Albertan homeowners can possibly take advantage of this tremendous opportunity to significantly reduce their monthly living expenses by way of reducing their monthly mortgage payments. And not only will this reduction provide immediate benefits in the form of reducing monthly expenditures during turbulent economic times, as the Albertan economy recovers Albertan homeowners will continue to reap the benefits of the lower monthly mortgage payments for the entire remainder of the mortgage term they arranged for during these difficult economic times.

To find out if you qualify and to find out how much you could potentially save, contact Anuj Gupta, AMP, BComm, Mortgage Associate of Alberta Mortgage at 780-479-2222 ext 14 or Apply online at www.albertamortgagecentre.com.

Rent or Buy in Edmonton? a no brainer today

Now that the Alberta real estate market has finally become a true buyers market, and with 5 year fixed residential mortgage rates nearing all time lows there is really no reason to continue renting. Today, mortgage payments are equal to and in some cases even lower than market rent rates for similar properties. Why rent when you could own for the same monthly payment?

Consider this, the average rent in Edmonton in 2008 was $930.00. At the same time, the average purchase price of a two bedroom apartment condo in Edmonton is $195,000. With a 5% down payment, on a purchase price of $195,000, you, as a home owner could be looking at a mortgage payment of $815.49 a month. Why pay your landlord's mortgage and let them reap the benefits of property value appreciation instead of you?

To find out if you could qualify for a mortgage loan, call Anuj Gupta, AMP, BComm of Alberta Mortgage at 780-479-2222 ext 14 or Apply Online at www.albertamortgagecentre.com.