Paying your mortgage off over thirty years can feel extremely daunting and like there’s no end in sight. Fortunately, there are some things you can do to combat the feeling of endless payments and make a larger dent in your mortgage.
Take Out A Fifteen Year Mortgage
One major advantage to getting a fifteen-year mortgage, as opposed to a thirty-year loan, is that you’ll generally be eligible for a much lower interest rate. While your payment may initially go up, you will save thousands over the course of your loan. This is a great option if you can afford the higher monthly payment.
Make Extra Mortgage Payments
If you’re looking to benefit from some of the interest savings of a 15-year loan but are afraid to commit to a more sizable monthly payment, a good solution is to get a 30-year loan and simply pay it off faster. You can accomplish this by doubling your monthly mortgage payment when you have extra cash available or by making extra lump-sum payments toward your mortgage as you’re able. This is a good way to pay extra without having to commit to paying more, especially if money gets tight. You will save tons of money on interest over the years.
Another way to make extra payments is to divide your mortgage payment in half and pay it every two weeks. You will end up paying one extra payment per year, and will barely even notice the money has been spent. It’s amazing how much of a difference just one extra payment a year can make on the life on your mortgage.
Switch To A Shorter Term Loan
While you may have initially taken out a thirty-year loan, you can shorten it to a fifteen-year loan. People often do this to take advantage of lower interest rates or simply to save on all of the added interest. While your payments may go up, the amount of money saved on interest is so much that it’s well worth the commitment. And your mortgage will be paid off in literally half the time.
Save Big With These Tweaks
Financial freedom can be just around the corner for you when you decide what option is doable for you. For help refinancing or to speak with someone about mortgage options, contact A1 now or call us (816) 822-8888 today.
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