Mortgage Payoff Hack

If you’re looking to pay off your mortgage faster, here are some smart “mortgage hacks” that can help you save on interest and become debt-free sooner:

Biweekly Payments

Instead of making one monthly payment, switch to a biweekly payment schedule. This results in 26 half-payments per year, which equals 13 full payments instead of 12—helping you pay off the mortgage faster.

Round Up Your Payments

Even rounding up your monthly payment slightly (e.g., from $1,450 to $1,500) can make a significant difference over time.

Make Extra Principal Payments

Whenever possible, apply extra money directly to the principal. Even small additional payments can shave years off your loan.

Refinance to a Shorter-Term Loan

Switching from a 30-year mortgage to a 15-year loan (if financially feasible) can help you build equity faster and reduce interest costs.

Use a Windfall Strategy

Apply bonuses, tax refunds, or other unexpected income toward your mortgage principal.

Eliminate PMI (Private Mortgage Insurance)

If you originally put less than 20% down and are paying PMI, check if you can remove it once you reach 20% equity. This saves money, which can be redirected toward your loan balance.

Leverage VA IRRRL (For Veterans)

If you’re a Veteran with a VA loan, the VA IRRRL (Interest Rate Reduction Refinance Loan) can help you secure a lower rate and apply savings toward principal reduction.

If you would you like help exploring refinancing options to pay off your mortgage faster? Contact me today 619-208-6499

The post Mortgage Payoff Hack appeared first on Andre Enriques Mortgage Banker - VA Loan Expert.

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.

The post Mortgage Tips appeared first on Andre Enriques Mortgage Banker - VA Loan Expert.

Want to save money on your next mortgage? This blog post is for YOU, friend!

With interest rates on the rise, getting the best possible rate is even MORE important than ever — especially since it’ll be tagging along for the next, say, 15 or 30 years, unless interest rates improve, and we refinance your loan.

Remember, your interest rate depends on several things, like your credit score, the value of the home, and your debt load. So, if you want to save by locking in the best rate (yes, please!), here are three tips for a better interest rate you can’t afford to ignore:

1. Improve your credit score now. Get your free credit report from www.annualcreditreport.com. Look it over for accuracy and figure out what you need to do to bump it higher, with things like paying down outstanding credit card balances to 45% or less of your outstanding limit, settle collections accounts (but only if creditor agrees to delete from bureaus once paid in writing), or maybe add yourself to a family members card as an authorized user to a credit card that’s been paid on time.

2. Find a lender (such as myself) who is knowledgeable and will work with you to help you improve your credit score and find a competitive rate. We work with 50+ wholesale lenders and my goal is to find you the absolute best rate and loan program.

3. Boost your down payment. This may be a no-brainer, but the more you put down at the time of closing, the less you’ll pay on the loan. Plus, lenders view higher down payments as less risky loans, which could reduce your interest rate and help you get rid of that dreaded mortgage insurance premium (with 20% down Conventional Financing). Loan programs such as VA home loans do not carry any mortgage insurance (MIP).

Reach out with any questions, I’m always here ready to help provide you tips for a better interest rate and a great loan product.

The post Tips For a Better Interest Rate appeared first on Andre Enriques Mortgage Banker - VA Loan Expert.