When buying a house there are many things that are important to know. Do the numbers and you will find you are paying 3 times the cost of your house after the interest of a 30 year mortgage. That is right, by the time 30 years comes you will have paid triple the cost! Find out how you can save a lot of money and pay your mortgage off faster with these tips.
How to Pay your mortgage off faster
It might make you cringe thinking of paying triple the cost and it should. However there are ways that you can pay down your mortgage quicker. On top of paying off your mortgage faster you will save money on your overall costs. These tips on How to Pay Your mortgage off and Save Money will help you if you are a home owner.
Start with a 30 year loan and set it up so you make bi weekly payments. Doing this you will end up paying 13 months of payments each year instead of 12. This will make your 30 year mortgage paid off in 23 years. That is 7 years of mortgage and interest payment savings.
Make 1 extra payment on your mortgage. Doing this each year you will drop your mortgage. Plus combining it with the biweekly instead of monthly payment you will knock your mortgage down to being paid off in 20 years instead of the 30 year length of the mortgage!
Pay your taxes with escrow instead of paying them yourself. While this might sound crazy because you will pay each month along with your mortgage payment. You will then have them all ready set for when you need to pay your taxes each year. Also you won’t ever be late on paying your taxes and get a penalty because your mortgage company will handle paying them for you.
Paying your closing costs instead of having them rolled into your loan. I know this might not be possible for everyone, but if you can do it you will save a lot of money. You will save yourself from paying the cost over time and paying the interest. So you will save money by not having to pay the interest on your closing costs.
Make extra mortgage payments. If you have extra money make an extra mortgage payment. Doing so will knock down the amount of interest that you are paying overall.
Buying a house is something exciting but the high cost of the final number you will pay on a 30-year mortgage is not. That is a lot of extra money that you are spending! It is stressful to see that you are paying 3 times the cost of your house after paying a 30-year mortgage. By doing these simple things you can drastically reduce how much you will end up paying for your house and save yourself a lot of money in the end.