How to Pay Off a 30-Year Mortgage Early?
When making a commitment to pay off your Roseville, California home, it is wise to understand how a 30-year mortgage works and how to pay it off within a shorter amount of time.
Here are some ways to pay off a 30-year mortgage early:
Pay down your principal by adding $100 a month to the principal and interest mortgage payment. Adding just $100 a month can reduce a 30-year mortgage by several years. The more money you add every month, the faster you will pay off the principal. Discuss how to best handle this payment with your lender. It is often wise to send a second check or monthly payment with the words “principal only” in the memo line.
By changing to a biweekly mortgage plan, rather than a monthly plan you are paying one extra mortgage payment every year. This can shave several years and thousands of dollars in interest off the life of your loan.
Refinance your mortgage rates to a lower rate when you’re able to, but continue to pay the same amount as you were paying before. This can really speed up the paying off a 30-year mortgage.
Know your budget and plan accordingly. Put any additional money towards your principal balance. This could be a gift, tax refund or any monthly or annual bonuses.
Refinance into a shorter loan term. For example, a 15 or 20-year mortgage will reduce the amount of interest paid and move you faster towards financial freedom.
These methods can help you pay down your mortgage loan in less time than a traditional 30-year fixed loan allows. However, always consult with your Loan Officer prior to making any significant changes or decisions when it comes to your home loan.
Contact the Chris Reese Mortgage Team today to discuss your home loan options in Roseville, CA and the surrounding areas at 916-502-1656.
http://californiamortgagehero.com/2014/02/27/how-to-pay-off…mortgage-early/
How to Pay Off a 30-Yr Mortgage Early?
No comments:
Post a Comment