When it comes to mortgage payments, having a strategy to save money can be simple. Here are a couple tips to help you on your way to financial freedom by controlling your mortgage payments.
Have a variable rate mortgage? Try paying the monthly payment you would be paying if you were in a fixed rate mortgage instead. The extra money would go directly to your principal amount bringing down your interest payments – the less interest you have to pay, the better! Also, if rates happen to rise, you’ll be used to that higher payment which won’t put you in an uncomfortable financial situation.
Choose bi-weekly payments over monthly. By choosing bi-weekly payments you will be making one extra monthly payment per year – this will save you a ton of money on interest! If you want to get even more aggressive, go for the accelerated payments to pay your mortgage off even faster.
Shorten your amortization period. By having a shorter amortization period, you will have less total interest to pay. Your payments may be a little higher, but in the end your investment will mean more if you’ve paid less interest for it.
Try these tips and start controlling your mortgage payments today to save you money for wherever life takes you! Need more advise on controlling your payments? Contact Mortgage Winners to see how you can start your savings now.