Mortgage Tips

Want to save big on your mortgage?

Make it automatic!  Set up bi-weekly automatic payments and watch your savings grow over time. Here’s how:
Automatic Biweekly Payments

Split your monthly payment in half and pay every two weeks. You won’t feel much of a difference on your budget, but you will see your mortgage balance drop year after year.  This should result in an extra payment each year and can shave years off your mortgage term!

Round Up Your Payments

Round up your payments to the nearest hundred or thousand. For example, if your payment is $985, round it up to $1,000. Over time, this small change can make a big difference in your total interest paid. By doing so, you allow for less interest to accrue and eventually you will pay more to your principal vs. interest. Generally speaking, you will pay more towards the principal of your mortgage by the 10th year of a 30-year mortgage.

Refinance

Refinancing your mortgage can lower your interest rate, reduce your monthly payment, and could save you thousands in interest over the life of the loan. It’s recommended to refinance only when you save at least .50% of a point because you want to have enough monthly savings to recoup the cost of the refinance within 36 months.

By making your mortgage savings automatic, you’ll be on your way to financial freedom in no time! Having a paid off mortgage is a great accomplishment that many can only dream of and by following these tips you’ll be there before you know it.

As always, I’m here to help you with all your mortgage needs. For more mortgage tips feel free to contact me directly.