Are you in the market for a new home or looking to pay down your mortgage sooner? If so, you’re probably trying to find ways to save money! One simple trick that can help you save thousands (and I mean THOUSANDS of dollars on your loan is to just make one extra payment on your mortgage each year. That’s it, one extra payment. It could cut the life of the loan by around seven years, reducing interest and overall expense.
If you’re looking to make it EVEN easier, take your mortgage payment and divide it by 12, then pay that additional amount towards your principal balance each month. For example, if your mortgage is $1800 a month: divide $1800 by 12 to get $150. Just by putting an additional $150 toward your principal each month you’ll be saving THOUSANDS of dollars on interest long term and pay down your mortgage long before that 30 year term is up!
It may seem like a small change, but over the course of your loan, that little bit of extra money will add up and help you pay off your mortgage sooner. It’s a simple trick that can have a big impact on your bottom line Have you made any other changes to reduce the amount of time (and money) it will take you to pay off your home? I’d love to hear about them in the comments below!
Questions? Send me an e-mail at edavis@guildmortgage.net. If I can’t help you out directly, I’ll point you in the right direction so that financing your dream home is a breeze! When do you want to get started?
