Want to pay off your mortgage more quickly? Use these tips:
Round up your monthly mortgage payment amounts. For example, if your mortgage bill is $1,175, pay $1,200 each month. Paying a little extra principal each month gradually lowers the interest you pay over the life of your mortgage.
Another method of paying extra is to take the amount of one mortgage payment and split it in to 12 smaller parts. Then, add one part to each of your monthly mortgage payments. Indicate to your lender the extra portion applies to the mortgage principal.
Set up an automatic payment for extra payments.
Refinance to lower your interest rate and shorten the term of your mortgage. Before you commit, confirm that the terms of the refinance save you more money than the cost of refinancing!
Mortgage accelerator programs are out there, but come with some major drawbacks:
Mortgage accelerator programs often require payment of hefty initial fees or the purchase of expensive software. Some mortgage accelerator programs cost up to $3,500 – money you could be using to pay off your mortgage yourself.
Mortgage accelerator programs require your total financial attention – all of your excess monthly income goes to paying off your mortgage principal.
Many mortgage accelerator program providers hold your money and make payments for you. If they make a late payment, you’re on the hook for extra interest, late charges and a negative mark on your mortgage payment history.
With a little budgeting and planning, you can avoid the use of an expensive middle-man and still achieve your early mortgage payoff!
Are you or anyone you know looking to buy or sell? Call, text or email me to set up an appointment today!
At Exit Realty of the South, we are committed to providing you with up-to-date information, comprehensive resources and the highest possible level of customer service in order to meet or exceed your real estate goals and objectives. Guided by honesty and integrity as a professional standard throughout the company, we are devoted to your total satisfaction as the benchmark of our success. The recipe for our success is an extensive support team that is second-to-none and passionate real estate professionals who invest numerous hours of continuing education to remain on top of their field.
Above and beyond having the desire, knowledge and ability to manage a real estate transaction, we employ innovative tools and systems that allow us to be most effective and efficient in serving you. From our computers to web-based real estate software and many other innovative techniques, we are driven to stay at the leading edge of technology to better serve you.
Our mission is to provide the highest quality Realtor services. At Exit Realty of the South we strive to provide the most knowledgeable and savvy real estate agents in the market. Whether you are buying or selling, an Exit Realty of the South sales representative has the skills to serve you above the rest.