Getting More Out Of Your Mortgage

Paying off your mortgage might sound ambitious, especially if you have recently purchased or refinanced into a 30-year term. But it’s still smart for homeowners to give some serious thought as to how they’ll pay off their home loan. An early mortgage payoff can net substantial interest savings compared to making scheduled payments for 15 or 30 years.

 

Bi-Weekly Payments

A biweekly mortgage is a mortgage in which one-half payment is made every other week instead of a “full payment” made once a month. The homeowner makes 13 payments per year instead of the usual 12, which accelerates the loan’s payoff schedule by up to six years.

 

Paying Extra Towards Principal

Paying a little extra every month on your home loan is a way to make that dream of owning your home free and clear a reality faster than you thought, and with today’s historically low savings rates, it could make more sense than ever.

 

Rather than letting money languish in a CD, money market, or savings account that pays practically nothing, many homeowners might be better served by paying down their mortgage.

 

Doing so can save tens of thousands of dollars in interest and shave years off your loan. Our accelerated mortgage payoff calculator on my website can help you figure out how quickly you can pay off your loan and how much you’ll save.

 


* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.