Blog

Get rid of those pesky mortgage payments faster with these tips.

Getting the keys to your new house feels incredible. What isn’t as awesome are monthly mortgage payments. We get it, your monthly payments equate to  a lot of money over the next 15 to 30 years. Don’t get overwhelmed, instead consider this list of tips that can help you pay off your mortgage faster and easier.

Look into points.

If you haven’t yet signed on the dotted line for your home loan, ask your lender about points. Points cost 1 percent of your loan total (e.g. a point on a $700,000 mortgage will cost $7,000) and can slash your mortgage rate by as much as .375 percent. The more a point will cut off your rate, the smarter it is to buy it. If you have substantial cash reserves and plan to stay in your new home for a while, buying points can be  a wise investment option.

Consider doubling up.

Instead of making one monthly payment, consider making a payment for half of your mortgage every two weeks. With 52 weeks in a year, you’ll create 26 mortgage payments each year (rather than 24) with this approach and strategically put extra money towards your mortgage each month without feeling a significant  pinch.

Dedicate your excess.

If you get a bonus or a cash gift, put it towards your mortgage instead of depositing it directly into your account. You’ll never miss the money and you’ll shave time off your loan and create significant savings. Want proof? If you have a $200,000 mortgage at 3.65 percent and you make an extra payment of $1,000 each year, you’ll reduce the length of your mortgage by four years and save $20,000!

Of course, before you can make the most of these tips, you need to purchase your dream home! For all of your home buying and selling needs, contact Jenn Blake Real Estate Group at Pacific Sotheby’s International Realty in San Diego, California at 858-663-6788.