How to
Save on Interest.
Simple, practical strategies to pay off your mortgage faster and save money.
There are a few easy ways to make extra principal payments that can save you a ton of money in interest expenses and get you mortgage-free sooner than you thought possible. Here are a few simple strategies you can use:
Round Your Monthly Payment Up
The results of this simple strategy can save you a fortune and drastically reduce the length of your mortgage.
If your monthly mortgage payments were $734 a month, but you rounded it up to $800 per month:
Make One-Time Pre-Payments Using Your Income Tax Refund
This is another easy way to save money and shorten your mortgage without impacting your monthly household budget.
If you have a $100,000 mortgage, and you receive a $1,000 tax refund this year, you can choose to apply that entire refund directly to your principal:
Choose a 15-Year Mortgage Over 30-Year
If you can comfortably afford the higher monthly payments, you are far better off getting a 15-year mortgage instead of a 30-year. It won't cost you much more in the long run, and the interest savings are truly incredible.
For a mortgage of $100,000 at 8% interest over 15 years instead of 30 years, your monthly payment would be about $200 more, but the savings are:
Start Planning Your Strategy
Using these simple strategies is the easiest way to drastically reduce your interest expenses and shorten your mortgage period. Talk to us today to see how we can align you with top lenders offering flexible pre-payment options!