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Home Ownership Preparation :: Mortgage Advice Center
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Any mortgage advice center will tell you that paying off your mortgage early is the way to really put money in your pocket.
There are many different types of mortgages from 30 year fixed rates to short-term adjustable-rate and every type of mortgage has its own advantages and disadvantages.
However, most people opt for a 30 year fixed rate mortgage. It's easy to understand. It's simple to manage. And it lets homeowners lock in a low interest rate for 30 years.
However there's one drawback, who really wants to be making mortgage payments for 30 years?
A good mortgage advice center will tell you that paying down your mortgage early will not only save you money in interest.
It will free up those mortgage payments for other investments to learn how you can avoid wasting hundreds of thousands of dollars on your mortgage payments keep reading.
Set up a Biweekly Mortgage Payment Plan
Let's say your mortgage payment is $1500 a month. If you set up a biweekly mortgage payment plan, you won't send a check for $1500 a month.
Instead, you'll send $1250 every two weeks. This won’t feel any different because it will be connected to your pay cycle, but you’ll soon notice that you're actually making one extra payment every year.
While one extra payment a year may not seem like much. It can definitely add up over time, depending on your interest rate you can pay off your mortgage anywhere rescreened five and seven years early.
That will save you several thousands of dollars in interest payments over the life of your mortgage.
Automating Biweekly Mortgage Payments
The great thing about setting up a biweekly mortgage payment plan is that you don't have to refinance your mortgage or jump through to us.
Most lenders offer programs that will actually automate the whole process.
To enroll in a biweekly mortgage payment plan. Call up your lender and to speak to their mortgage advice center.
One of their mortgage representatives can easily walk you through the process. However, some companies hire outside firms to run.
Biweekly mortgage payment programs for them fees outside firms generally charged set up fees of anywhere between $200 and $500.
In addition to the set fees, you can expect to pay a transfer charge that attitude every mortgage payment these transfer charges range from about $2-$8.
While an up front payment of a few hundred dollars and the transfer charge applied to every mortgage payment may seem like a lot, any mortgage advice center will tell you that you can save even more over the life of your mortgage.
However, if you’re a first time homeowner, you can save this money by arranging a biweekly mortgage payment plan up front.
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Home-Ownership-Preparation.com :: Mortgage Advice Center