Your mortgage is likely the large financial commitment you will ever make. Getting advice you can trust that is specific to you is critical. We are here to help you at each step in the process and are committed to making your life easier.

Paying off your mortgage sooner
Renewing your mortgage early
Accessing the equity in your home
Choosing the right term for your mortgage

If you’d like to explore these strategies further, speak to your Member Service Advisor.

With an OPPA Credit Union mortgage, you can take advantage of various payment privileges to pay off your mortgage sooner – and lower the amount of interest you pay over its life:

• Make an extra, lump-sum payment of up to 20% of the original mortgage amount, once every calendar year.
• Increase the amount of your regular monthly payments by as much as 25% each year.
• Pre-pay double the amount of your regular payment, on any or all payment dates.
• Shorten the amortization schedule – Most mortgages are amortized over a 25-year period, meaning that’s how long it will take you to pay it off. However, you can choose a shorter amortization period which will increase your monthly payment somewhat but will reduce the amount of interest you pay over the life of the mortgage.

top

 Renewing your mortgage early

Depending on the rate you currently have, it may be advantageous for you to renew your mortgage early. There are two instances where you might benefit.

If you are currently at a high interest rate, you can take advantage of today’s record low rates by averaging your current higher mortgage rate with today’s lower rate. For example, let’s say your five-year current rate is 5.85% and your mortgage matures in nine months. If today’s five-year rate is 5.40%, you would be looking at a blended rate of 5.42%, based on the remaining term of your current mortgage and the new five-year term you would have under the extended mortgage. There is no penalty or fee to do this.

If you are enjoying a very low rate, but are concerned about future rates and worried about having to lock in at a high rate at the time of your renewal, you may want to renew your mortgage early. You can then decide to average your very low rate with today’s still record low rates and lock it in for a longer term than you have left on your current term.

Either way, we will help you make the right decision and only do what’s in your best interest.

In today’s real estate market, many home owners are enjoying record appreciation on their properties and seeing their investments rise quickly. You can take advantage of your gains by refinancing your mortgage at a higher amount to access some of the the equity in your home. The proceeds can be used to pay off higher interest loans or credit cards, or to renovate your home and increase its value even more.

When you refinance, you can choose the same amortization schedule that you had before so that your mortgage is paid off when you originally planned. Or, you can decide to repay it over a longer term, lowering your monthly payments and freeing you from large monthly debt obligations.

A closed mortgage guarantees you a certain rate for the amount of time you decide to lock it in. We offer a variety of terms, ranging from six months to 10 years. What’s right for you will vary depending on current interest rates, your financial situation and the level of monthly payment you find most comfortable. Your Member Service Advisor can help you make this decision.