Marketing Promotion

Marketing is an integrated communications-based process


  

Is Paying Down Your Mortgage a Good Idea?

Many times, people may receive a windfall or bonus and need to decide the best way to use the money and paying down part of your home loan may be one of the choices.

The alternative would be to take the excess cash and invest it. Which is the better decision, to invest the money or to use it to pay down all or part of your mortgage?

There is no one answer for all people and all times. The current rates of return on the investment you are considering, and how much you are paying on your own mortgage will be the most important considerations. As an example, take a $5,000 bonus that you are deciding upon the best use for.

Mortgage calculators available on the web can tell you how much you have to pay on your home loan, but let us just use an example of a 6.25% mortgage with a balance of $25,000 and five years to go. Using your $5,000 to pay some of the mortgage off would save you $100 per month, or a total savings over the course of the mortgage of $835.

A CD paying 2.5% would yield $657 over five years, so the benefit here is clear, correct? Wrong. If you receive tax savings because of mortgage payments, you would lose any of those savings if you paid down the loan.

And what about the taxes you have to pay on the CD? Does this mean that you should NOT pay down your mortgage with any excess funds you may acquire? No, it means that you cannot only look at the absolute costs and yields of each of the alternatives.

What if you are retired, and don’t have a large income to shelter any more? In this case, the savings from paying off the loan may be more to your advantage.

Another consideration is that CDs may not pay 2.5%, but rather only 1% or 1 %. This may change your calculation considerably. What should you do? This analysis clearly teaches us that each situation is different and you have to do all of the calculations for your own situation.

Get the lowest rates with mortgage broker in calgary or find more about calgary mortgage


Related Blogs

Related Reading:

The New Rules of Marketing & PR: How to Use Social Media, Online Video, Mobile Applications, Blogs, News Releases, and Viral Marketing to Reach Buyers DirectlyThe New Rules of Marketing & PR: How to Use Social Media, Online Video, Mobile Applications, Blogs, News Releases, and Viral Marketing to Reach Buyers DirectlyDavid Meerman Scotts marketing bible has become a modern day business classic.

This is the book every ambitious, forward-thinking, progressive marketer or publicist has at the front of their shelf. Business communication has changed over the recent years. Creative ad copy is no longer enough. The New Rules of Marketing and PR has brought thousands of marketers up to speed on the changing requirements of promoting products or services in the new digital age. This is a one-of-a-kind, pioneering guide, offering a step-by-step action plan for harnessing the power of the Internet to communicate with buyers directly, raise online visibility, and increase sales. Its about getting the right message to the right people at the right time - for a fraction of the cost of a big-budget advertising campaign. This new, updated edition includes:

  • A new introduction discussing recent changes to the world of marketing and PR
  • A brand new chapter on mobile marketing
  • An additional chapter on real-time marketing and PR
  • Updated information on how to measure the success of your campaigns
  • A range of new tools
  • Fresh case studies
Principles of Marketing (13th Edition)Principles of Marketing (13th Edition) Today’s marketing challenge is creating vibrant, interactive communities of consumers who make products and brands a part of their daily lives. Learn how to create value and gain loyal customers. Kotler/Armstrong is a comprehensive, classic principles text organized around an innovative customer-value framework. Students learn how to create customer value, target the correct market, and build customer relationships. The changing nature of consumer expectations means that marketers must learn how to build communities in addition to brand loyalty. The thirteenth edition of Kotler/Armstrong has been fully updated and redesigned to make the book easier to use. Chapters now contain opening vignettes and accompanying outlines to help students study.
Defining Marketing and the Marketing Process; Understanding the Marketplace and Consumers; Designing a Customer-Driven Marketing Strategy and Marketing Mix; Extending Marketing--global marketing, ethics, competitive advantage
  Today’s marketers need to make use of all the latest technologies in order to find and capture their market. By creating customer value and building an interactive community, they can develop lasting and profitable relationships with consumers.

The New Rules of Marketing and PR: How to Use Social Media, Blogs, News Releases, Online Video, and Viral Marketing to Reach Buyers Directly, 2nd EditionThe New Rules of Marketing and PR: How to Use Social Media, Blogs, News Releases, Online Video, and Viral Marketing to Reach Buyers Directly, 2nd EditionA completely revised and updated edition of the BusinessWeek bestseller on effective, modern marketing and PR best practices, The New Rules of Marketing and PR shows you how to leverage the potential that Web-based communication offers your business. Finally, you can speak directly to customers and buyers, establishing a personal link with the people who make your business work.

This new second edition paperback keeps you up-to-date on the latest trends.

  • New case studies and current examples are included to illustrate the very latest in marketing and PR trends.
  • Completely updated to reflect the latest marketing and PR techniques using social media sites such as Twitter, Facebook, and YouTube
  • Includes a step-by-step action plan for harnessing the power of the Internet to communicate directly with buyers, increase sales, and raise online visibility
  • David Meerman Scott is a renowned online marketing strategist, keynote speaker and the author of World Wide Rave, from Wiley

The New Rules of Marketing and PR, Second Edition gives you all the information you need to craft powerful and effective marketing messages and get them to the right people at the right moment-at a fraction of the price of a traditional marketing campaign.

Creating a Marketing Plan: An OverviewCreating a Marketing Plan: An OverviewEffective marketing cannot begin without an effective marketing plan. The marketing plan serves to define the opportunity, the strategy, the budget, and the expected results of product sales. In this chapter, the individual elements that comprise the plan are introduced, as are details on how to implement adequate research in considering each decision therein. This chapter is excerpted from Harvard Business Essentials: Marketer's Toolkit.
The New Rules of Marketing & PR: How to Use Social Media, Online Video, Mobile Applications, Blogs, News Releases, and Viral Marketing to Reach Buyers DirectlyThe New Rules of Marketing & PR: How to Use Social Media, Online Video, Mobile Applications, Blogs, News Releases, and Viral Marketing to Reach Buyers DirectlyDavid Meerman Scotts marketing bible has become a modern day business classic.

This is the book every ambitious, forward-thinking, progressive marketer or publicist has at the front of their shelf. Business communication has changed over the recent years. Creative ad copy is no longer enough. The New Rules of Marketing and PR has brought thousands of marketers up to speed on the changing requirements of promoting products or services in the new digital age. This is a one-of-a-kind, pioneering guide, offering a step-by-step action plan for harnessing the power of the Internet to communicate with buyers directly, raise online visibility, and increase sales. Its about getting the right message to the right people at the right time - for a fraction of the cost of a big-budget advertising campaign. This new, updated edition includes:

  • A new introduction discussing recent changes to the world of marketing and PR
  • A brand new chapter on mobile marketing
  • An additional chapter on real-time marketing and PR
  • Updated information on how to measure the success of your campaigns
  • A range of new tools
  • Fresh case studies
Tags: , ,

Tags: , ,


Leave a Reply

Your email address will not be published. Required fields are marked *

*


*

You may use these HTML tags and attributes: <a href="" title="" rel=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>


  

  

My Traffix Box

Click here to get My Traffic Box
SEO Powered By SEOPressor