Posted by: Don Bayer, CFP
Here are a few mortgage tips to help pay down your mortgage in a more fastidious manner. Even these quick mortgage tips can help you save enough money on your mortgage which you can then put towards yourself; possibly acquiring that extra investment property, that dream car, or just to have that extra financial cushion in life.
Here are some useful mortgage tips to pay your mortgage quicker:
What is your current rate and term? What is your penalty to break the contract? Many mortgages that have a face rate between 5.0 and 6.0% should likely be renegotiated or moved to a new lender. This can be a great way to save money immediately, and pay down your mortgage faster.
If you want to convert your variable rate mortgage to a fixed term, what rate will your bank or mortgage company offer you? This is very important because negotiating with a lending institution once you’re their client is a painful process. It is much better to have this information before you renew or sign for your new mortgage.
If you decide to take today’s variable rate, think about basing your actual payments based on the fixed rate mortgage. This increase in payment will likely knock five years off your mortgage amortization, making you mortgage free sooner. If the prime rate does increase in 2012, you have built in four, ¼ point increases in the prime rate so your payments will not change.
These mortgage tips can have a tremendous impact on paying down your mortgage faster; these tips can also help you save thousands of dollars. Consider consulting a trusted mortgage agent for further assistance or for further clarification on your specific situation. Don’t settle for the status quo; you too can pay down your mortgage faster!