Could One Extra Mortgage Payment
a Year Make a Difference
Paying off your mortgage early might sound like a huge goal, but you don’t have to make huge changes to get ahead. Even small, consistent extra payments toward your principal can help reduce your loan balance faster, build equity sooner, and potentially save you money on interest over the life of your loan!
The best part? You can choose an approach that works with your budget rather than completely changing the way you manage your finances.
3 Practical Ways to Pay a Little Extra
-
Make biweekly payments
-
Instead of making one monthly payment, you may be able to split your payment in half and pay every two weeks. Over the course of a year, this can add up to the equivalent of 13 full payments instead of 12.
-
2. Put extra money toward your principal
-
Got a tax refund, work bonus, or another unexpected boost? Consider putting some of it toward your mortgage principal. Even if you don’t use the entire amount, a little extra can still help chip away at your balance.
3. Round up your monthly payment
-
You don’t need to make an entire extra payment at once. Something as simple as rounding up your regular mortgage payment can help you put a little more toward your principal throughout the year.
Is Paying Extra Right for You?
Every homeowner’s financial situation is different. Paying extra toward your mortgage can be a great strategy for some, while others may have different financial goals that should come first.
If you’re curious about your options, give us a call! We’d be happy to help you take a look at your mortgage and determine what may make the most sense with your current financial goals.