Pay off your loan faster

Pay off your loan faster

Jan 18, 2017 | No Responses

Looking for ways to save money on interest and take years off your mortgage loan term? Refinancing may not be the answer. Here are some ways to shave significant amount of years and interest charges off your mortgage term without refinancing. The first way is to increase your monthly payment. For example, on a $300,000 30-year fixed loan if you could pay an additional $200 a month you would take roughly 6-years off your 30-year term and save yourself $50,000 in interest charges. Another great way to lower your term is to make 13 payments in a year instead of 12. Making one additional payment on your loan every year is a great way to save money on interest and cut years off your loan term. A great idea is to use a end of the year tax return or bonus and apply it towards an additional mortgage payment. Making 13 payments a year on a $300,000 30-year fixed loan can save you roughly $33,000 in interest charges and take 4 years off your loan term. These are great ideas to help you save money and shorten your loan term. Paying down your principal on your home loan more quickly will never reduce the minimum monthly payment or allow you to skip a payment but in the long run will shorten the length of the loan and save you a significant amount of money in interest.

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