5 Tips for Paying Your Mortgage Faster – Buying a home is a dream come true for many, a plan which happens to be interrupted by a vicious span of 30 years of high monthly payments. Though having a fixed rate is a great way to keep the pain manageable, who wouldn’t want to pay their mortgage off as quickly as possible? Here are five tips to help you do just that.
1. Pay down points
When getting a mortgage, you might have a chance to put more money down to lower your interest rate or reduce the fees added to the top of the mortgage, and when you’re talking thirty years of interest, every dollar makes a difference. Use your savings to pay down the points or interest rate if you can afford it.
2. Pay Twice Per Month
Paying every two weeks is a great way to take an additional month off the balance yearly. Typically, you’d pay 12 payments a year, but if you spend every two weeks, that’s 26 payments divided in half, which equals 13. That means you’re making one extra monthly payment without much additional hurt. This will save you thousands of dollars and help you pay your loan years ahead of time.
3. Add A Few Dollars to Each Payment
Suppose your payment was $1,000/month. Instead of paying the minimum, try paying $1010/month. Over a year, it’s only $120, but on a 100,000 dollar loan, just paying $10 extra per month can save you a year of payments! Pay more, and you’ll save even more time and money.
4. Take Advantage of Refinance Opportunities
It’s not wise to refinance often, but if you spot an opportunity to refinance without paying fees, jump on it. Just ensure you don’t add more time to your mortgage term. Just 1% can save you hundreds per month.
5. Pay Early
Interest on a mortgage accumulates daily, so if you start getting into the habit of paying early, you’ll find that you’ll have less interest to pay. Over time, you’ll see the difference in your remaining principal balance. This isn’t a one size fits all solution, but it can work, especially in conjunction with other methods. If you get in the habit of paying early and often, you can’t lose in the mortgage game. More Way
These are Tips to Paying Your Mortgage Faster
If you’d like to learn more about how you can pay down your mortgage sooner and save money, check out our free mortgage calculator & mortgage quotes too, which can help you identify what you can afford and how quickly you might be able to pay your mortgage off by paying additional money, or by cutting your interest rate. Also, you’ll get five free mortgage quotes from local professionals that can help show you how to save money on your mortgage. By playing around with the free mortgage calculator, you’ll be armed with everything you need to know about getting and paying off a mortgage.