How to Knock out a couple of years of your mortgage and save on interest.
Now that you have become a mortgage holder definetly has its advantages over renting. But now its time to lower your mortgage and knock out some interest rates.
Call your bank they usually have a bi weekly payment plan for your mortgage. If you recently acquired a home call the mortgage department and ask them if they have a similar plan. By changing over to a bi weekly payment program you are making an extra payment on principal a year, depending on the length of the mortgage and the amount financed , your mortgage company can definetly give you a amortization schedule to see if you would save and how much.
If they do not offer this payment program, not all is lost whatever small amount you can pay extra a month on principal would definitely lower your principal at the long run. Be sure to make those extra payments to principle. If you do not specify where you want the payment made they can hold those funds and say that they thought it was for the next payment , so please specify where you want your payments made out to.
Usually the Mortgage Loans work like this, Your Monthly payment not only pays the principal but also pays the taxes, and pays the insurance. Which are called escrow. Don’t get frightened whenever you hear that word. It is normal not knowing a lot of the lingo used in day to day banking. If you do not understand something definitely ask or have someone explain.
Interests, Always keep a close eye on interests You might have financed your home 10 yrs ago when the interest rate was a 12%, and let say that the current rate is running at 4% (not actual figures) you can save a lot of money just by refinancing even lowering your payment and maximizing your cash flow.
Mortgage Credit Cards: Some Banks will have a credit card linked up to help you pay faster on your mortgage, I don’t have the full details, you might want to ask your bank, I think there are some that they will pay one % on each transaction you do. Why not take advantage of it.
By taking these steps, it is not guaranteed that it will save you money, ask your local bank for help to see what can benefit you the most.
