Frisco Mortgage News

Tips to help pay off your Mortgage sooner!

March 3rd, 2014 9:33 AM by Christopher Lear

I wanted to share this information mainly for consumers out there who may not be aware of this little tip to help pay off their mortgages sooner. When doing a loan for a client here in Texas, I try to go over this information with them and make sure they understand how just a little can cut years off of their loan term.

 Have you ever wanted to pay of your mortgage sooner..well here is some information on how to do so.

Pay every 2 weeks instead of 1 time per month this will cut down on your interest (APR) as it is configured by your balance monthly times 12 , not 24 so paying 1/2 the first 2 weeks of the month and the other 1/2 the last 2 weeks will cut your interest down and put more of your payment towards principal ,while your payment amount stays the same .

Also by paying any extra amount you find to be (affordable) towards principal cuts your time considerably, use this trick as well as the aforementioned payment terms, and you can cut your mortgage down to zero in 12 to 15 years instead of 30 years. There should be a space on your mortgage statement that asks for an additional principal as well as one for interest and escrow never pay additional interest as this does nothing for your balance where as the additional principal cuts both the amount you owe on the mortgage and cuts down your interest amortization as well. The other advantage is your PMI if any will come off sooner due to additional equity your building if you continue to pay the same as with the PMI instated you will pay off even faster.

I hope this information is helpful and saves you guys some good money and allows you to pay off your loan a little or ALOT sooner. I am always available to help with any mortgage questions.

Posted in:General
Posted by Christopher Lear on March 3rd, 2014 9:33 AM