Should I make extra mortgage payments?
I wanted to talk to you a little about making extra payments on your mortgage and how much this can save you money!
This is another question I receive often from my customers: “Is it a good idea to make extra payments?”
In short, yes! If it is financially feasible, it’s not a bad idea to make extra payments.
One strategy is to take the total of one payment and divide it by 12. Each time you make a mortgage payment, pay an extra 1/12 towards the principal. In a years time this is he equivelant of making one extra payment and you can reduce your total loan term by 5-7 years!
Essentially, if you pay more, you pay less interest.
Once you find a home and are ready to move forward with mortgage financing, you may want to see if any extra towards your payments fits into your budget.
Until then, give me a call or email me if you have any questions!