Financial news pundits often opine about Canadians accumulating too much debt. However, there is such a thing as good debt. Good debt is taken on with the specific goal of overall financial health in mind. Having a mortgage so you can own a home is good debt. And once you have your own home, you have equity that can help you in other ways. By gathering information, homeowners can find a plan that works for long-term financial stability. A mortgage calculator can help Markham homeowners consider their options.

 

 

A mortgage calculator is a handy on-line tool that allows potential homeowners to input mortgage terms and see the financial implications of different choices. By comparing variables such as interest rates, amortization periods, down payments and payment types, the calculator spells out the advantages of each situation. By lowering interest rates by a percentage or two, or by increasing your payment schedule, homeowners can save thousands of dollars over the term of a mortgage or loan. While a mortgage calculator can be useful while considering an initial home purchase, it can also be a helpful tool for seeing how home equity can work towards help with other financial goals.  

 

 

It’s easy to accumulate debt, but harder to pay it off. Interest rates on credit cards can be prohibitively high. When someone loses a job or becomes ill, bills can accumulate. An unexpected expense, such as the need for a new roof, can suddenly become a financial burden. Feeling overwhelmed by debt can be extremely stressful. Often it makes sound financial debt to consolidate debts.

 

Let’s say you have $75,000 in credit card debt at the rate of 18.9%. If you are paying a minimum payment of 4% of the outstanding balance, it will take more than twenty years to pay it off, paying over $48,000 in interest. If you consolidate all that debt into a home equity secured loan, you are likely to be paying along the lines of 4% interest, which, over the years, can save you thousands of dollars.

 

 

A home equity line of credit (HELOC) is a flexible line of credit that uses a portion of the equity in a home (the value of the home minus the outstanding mortgage) to secure a low-interest line of credit.  A second mortgage on a home can also be an option. A second mortgage has fixed interest rates and payment schedules. A a second mortgage can be a good option for those who worry about fluctuating interest rates and want to set doable targets for paying down debts. To see if a second mortgage is a viable option, get an accurate picture of the financial obligations by entering all terms into a mortgage calculator.

 

 

Before speaking to a reputable mortgage specialist, Markham homeowners should work out the implications of various options with an accurate on-line mortgage calculator. This will allow you to independently compare rates and give you the information you need to make the best decision for long term financial health.