Increase payments – Did you know that you can increase the number of mortgage payments you make each year? By switching from monthly to an accelerated weekly or bi-weekly payment schedule, you will make the equivalent of one extra month’s payment each year.
Shorten the amortization period – most people commonly choose an amortization period of 25 or 30 years. If you shorten it to even 20 years and increase your payments, your home will be mortgage-free sooner. You will end up paying less interest over the period that you have your mortgage.
Lump Sum Payments – not everyone has extra cash readily available, but if you do, consider making a lump sum payment each year. This will be applied towards your mortgage principle.
Check out payment options – some lenders are flexible and will let you increase the amount of your monthly payment either temporarily or permanently. The increased payment goes directly towards your mortgage principle.
If you would like to learn more about ways to save money on your mortgage, contact us today!