Most mortgages have the option to allow payments to be made on a weekly or bi-weekly basis. This option may be desirable for two reasons. The first is it can save you money as you can expect to pay off your mortgage about 4 years sooner. This can save you dramatically over the life of your mortgage. The other reason why these options are so popular is that if your employer pays you on a weekly or bi-weekly basis, you can simplify your budgeting by making the payment line up with the way you paid.

Paying extra amounts on your mortgage can make a big interest saving over time. When we select a mortgage company, privilege payments options are something that we look for. A 20% privilege payment will allow you to pay off up to $20,000 per year on a $100 000 mortgage. It is important that the privilege payment also be flexible to allow you to pay smaller payments on the mortgage and as often as you wish. An extra $1000 periodically paid on a mortgage can help you become mortgage free faster.

When you require a mortgage for more than 75% of the purchase price of a property, that mortgage must be insured by Canada Mortgage and Housing (CMHC) or GE Mortgage insurance. The premium charged by these company`s decreases as the down payment increases. When you finance your property at 95%, a premium of 2.75% is added to the mortgage. By increasing the down payment to 10% of the purchase price the premium can be reduced to 2.5%. If you can put down 25%, you can avoid any additional insurance fee. Depending on your situation there are ways that you can structure this financing to avoid the CMHC or GE insurance premium.

As mentioned above, when you put a 25% down payment on your purchase you can avoid the CMHC premium. More importantly the larger the down payment, the lower the amount of interest you will pay over the life of your mortgage. It is important to note that it may not be wise to stretch yourself to increase your down payment and end up borrowing on credit cards or a line of credit at a higher rate.

The options for mortgages available can be very confusing for most mortgage shoppers. Terms for mortgages vary between variable and fixed rate, 6-month terms to 10 year terms. Taking a variable or floating rate mortgage can have savings. Typically the shorter the term or guarantee of the rate, the lower the rate will be. This does not always happen, depending on the market place and the economy, but history has shown that short-term rates tend to be lower than long-term rates. The up side of variable rate is the strong potential for interest rate savings. The down side is the fact that you are accepting the interest rate risk without a guarantee. If you are considering a variable rate mortgage you need to look at your own risk tolerance, and your cash flow available to deal with potential increased payment. Considering projections of rates and where we see interest rates heading can also be important in this decision. Make sure you talk to an expert when you are making this decision.

It's like a love affair, some old houses make your heart skip a beat! It is hard not to fall in love with the historic unique architecture, gabled roofs, hardwood floors, crown moldings, and antique light fixture - old houses definitely have their charm.

The plastered walls, leaded glass windows, original chandeliers, and oak paneling make this property as attractive as it can possibly be. If you found your love you should be aware of the following money pits of old houses. You do not want to discover that beneath the surface of your dream home lays a dilapidated wreck.

This article provides you with some valuable tips to help you identify potential problems and some renovation rules, should you decide that this love affair is going to be your Gold Mine.

Foundation
The foundation is the most important aspect of any home especially for older ones. One problem that is common for older homes is called the “sulphate attack”. This can occur as a result of a chemical reaction between the soil and the concrete, which causes the foundation to crack and crumble and that can be very problematic. Another major concern with older homes is that the centre beam of the home can begin to sink. This can result in a sagging roof, bowed walls, and sloping floors. If the old house has a bad foundation then renovating it can be very expensive where the cost can range from several thousand dollars to $50,000 depending on the size of the home. Also, in some cases, one might needs to jack up the house to replace the foundation and shore up the centre beam.

Electrical Wiring
When buying an older house, it is very important to find out if there are any problems with the state of the electrical and lighting system. Do the lights flicker? Is the current steady or do the lights fluctuate between bright and dull? Is there adequate lighting in the home? It’s important to have the wiring carefully inspected. Also, many older houses use aluminum wiring, which is cheaper than copper wiring but it is a serious fire hazard. Ensure that you factor the cost of rewiring into your offer price. Also, you should consider whether there are enough outlets in the home to suit the needs of a modern household. Install more outlets in order for you to run a number of devices at once like a television, a computer, a stove, etc.

Lead Paint
In older homes, lead paint is very common as lead was used as a white pigment in paint until the mid-1950s. If you are planning to repaint the home, call in a professional renovation firm as they know the safety precautions needed to be taken when repainting the house. Children and pregnant women should not be in the home during renovations.

Asbestos
Asbestos is a mineral that makes a very effective fire and heat-resistant material that was discovered to cause lung disease. When the tiny particles of this mineral are inhaled, over a period of years they begin to damage the tissue of the lungs. In old homes, asbestos was used in carpet underlay, textured paints, roofing felt, electrical wiring insulation, acoustic ceiling material, and insulation. Getting the house checked for asbestos is very critical.

Galvanized Pipe
Galvanized pipes are known to rust very quickly. Most insurance companies now refuse to cover water damage caused by leaks in a home with galvanized pipes.

Just like people, years will eventually take a toll on homes as well! Things with years begin to sag and slope, which is why it's very important to know about the conditions of the house your planning on purchasing. For old houses, renovations are a challenge. To determine the price you are willing to pay, add up the estimated costs to renovate the property based on a thorough assessment of the house. Then, subtract that from the home's market value after renovation. Allow for an additional 5 percent for cost overruns and unforeseen problems plus inflation.

Preserve the Charm of Your Old House

If you have already fallen in love with this old house, then make sure you follow the golden rules in repairing your dream home and preserve it's historic features and value.

   1. The golden rule of remodeling is, "Do no harm". As you update your older home, make sure to preserve its historic details. Reuse existing materials. Keep historic moldings and hardware. Wire gas lamps for electricity. Keep distinctive examples of craftsmanship. Restore marbling, stenciling, and carvings.
   2. Don't try to undo long-ago renovations. Most buildings change over time, and alterations to your house may have historic significance in their own right.
   3. Whenever possible, repair rather than replace. Don't throw away that old claw foot bathtub - have it re-glazed. Fix damaged doors, refinish old cabinet and  patch cracking plaster.
   4. If historic feature cannot be repaired, look for a similar item at an architectural salvage center, or buy a new item that matches the old in design, color, texture, and other visual qualities.
   5. And best of all make sure you hire a contractor that share your passion and understand your love affair with your old house.
      

Good luck, you may have found your Gold Mine.