Mortgage Hacks to help you pay off your loan early
- Get rid of PMI insurance. Private Mortgage Insurance is insurance that protects the lender in case you default on your home loan. While it’s required if you have a conventional loan or if you make a down payment of less than 20%, you can still get rid of it. You can either make extra payment until you get to 20% and ask to cancel or you can refinance into a different type of mortgage. This could save you hundreds.
- Make bi-weekly payments instead of monthly. If you make bi-weekly payments you can end up making 26 half payments a year instead of 12 full payments, helping shave years off your mortgage.
- Refinance to a shorter loan term. Switching to a shorter term means higher monthly payments which can save you tons of money.
- Refinance to a lower interest rate. If you’re more focused on saving money every month on your mortgage payment versus saving over the long term with interest, consider refinancing to a lower rate. If you can’t negotiate a lower interest rate with your current lender, you may be able to refinance to a lower rate with another lender. This is especially true if rates have gone down since you originally got your loan.
- Negotiate a lower interest rate with your lender. To get the best possible rate on your mortgage, it is important to be proactive and negotiate with your lender. One way to do this is by comparing interest rates from different lenders. By shopping around and getting quotes from multiple sources, you can put pressure on your lender to offer a lower rate.
Always make sure to check around to find ways to save you money in the long run.
Information provided by https://www.entrepreneur.com/article/429040