Tise Cotuda tas.oa Ftaaye 16. 1907 - IIl 'Shopping fot' à mortgage Compare rates for savings [tac lâtest %frnkle an ceassumer home financ- ing aîI something calteai the "declîning rate" mortgage. Launched in May. the new-utyte mortgage corntes an îwo ternis. a 7-yeae anda a 5-year. For the 7-ycae lermi tise rate viarts oui ai 9.M5 pet cent andi the 5-ycar al 8.75 per cent. tIn ach case tise rate drops (declattes!) iy a quater point each year te a final rate of7 5 pet cent. Ons tise surface tbat tnay appear tas be pretty gondi. But isoli on. As aey chanrtee accountant staîl poant out - isow dues that compare wstt gassug rates for regislar mon)igagesl Cuc n9 tise i -Year mIrig4e rate stands atou oai better), tise 2-year ait 7.75 pet cent. tisel year al.8,25 pser cena anda ste 5-year at 8.5 pet cent. _% A cluser luu. Su already some of tha sisae as g oing off tihe declanfing rase deal. But let's take a classr leok. Suppose you go for the the 7-yeae declining rate package. lita means oni a $ 100,M90 mort- gage the ntisly payments sise eut ai $844. reducang hy about S 16 9 moti cach sta for tise remainder of the ri, witi a final ycars% rnonthly paymcnt aaf $746. Now. if yau epteai instcad foM%4ndad 1 - yeat martgage ei 6.5 per cent. yaaur monihly paymnins on tise same $100>,000) weul ha tnly $670 - $174 less pet montis tbanthlie other lise risk, oc axrse is tisai anieresi rates stall bc igher when i cernes isme te revtew. But tisai may niiha us aabig gamble. To lcave yen an exacaly tise satie financial siaiaen as tise alcclifnng rate masigage. snierest rates would isave te icrease sutastantaally -anda tisy'd have tI average 9.125 per centa ayeae. Sas even if the raie ascreaseat sext year to 7 or 8per cent (a majee.iacStase anifred). yau'ai sutaî ha weli aiseas by gesng witis tha l-yeae tenrt - if yen don*t minai a litile nsala Tise othaer ting as tisai i gises yen a great epportunity te malt tame your motigage. And usais ihe nanti cf aise gane. stayed ai the 6.5 per cent level white you kept paymng $844 a menti, yoaa'd.have your entire montgagc patd off in tess tiss 16 yeaes, instesad of 25. The bill ptus here is thaï in such an evena your totat interest cos# would he $58,790 corn- paeed witls $133,11t8 in tise case of tise 7-year decltfngraemeaecafil *seil pays te check tie numbets very crfl Moneycar as generai finana-tal advice by Canada's daretered accoamntants. Racla Dates as assistant prisfessor of accouaflîng & finance a, the Uni ta. sin. ofGuel pE. CHRSTI & OD REmAL.5UUI1U A E.UUWN LU&DU5 s., E ; a I *Pictursaq.ss96 aces aqagtutiatufsre i, Ls UWW 4 oblêetuboss.os25 ici. bsa*iy strsam, 4 b.duoom sion houts, cirCa 1840, W"dtb wM udU*jb dstgisd aiêor cal- Wdu té -hil Cal Yvonne. Ua tull sà mus s* s*ea Pm YvoneChisie-. i.oer B. MILLIPOND REALT INC., REALTOR C: REALTY WRD-508603 REALY WRLD Suirf the N et - vi sit ouIr weh site & view a sample of our 1isung FUR RISIDLS PEOP«LE nait us your censanents and roquests. bttp.I/www.ungsàn.o.c.. Incress paymnt Suppose ta you upped your monthty pay- ment from $670 to $844, tihe ssse a- tise finit ycar declinîng rate paymeua. This way you wouldl sisave abotut $2,.100 night off tise top of your migage. So when il cornes lime te renew. tise principal would bc tess hiall $98,000 -sad asot $100.000. Yoasat also save a lot tn tuteresi. .. And lurtiser suppose that if interest rates M A1 M t . -1P 870231 S 00)7026 *ag -H SU. 0m mals timlita . ytoit,0 . s1. 3+1 bedrottue. oveamad tsmi oora. 2 kilsisti (l eal-in). 3+i1 baft. DdC, ha0 off. g» Nm.bN;. Cerseaic 5ooting. 30-oz. carpel, andi tise lst pose ont. Just $229.000. Oeil Antonito Viduri, Saies Rsp. et s7430 totisy Nrai1wawna Ca MOIVI, ', m