Save Money On Your Mortgage

1) Unless you are under a pre-payment penalty mortgage agreement (check for that first), you are not obligated to only pay the interest due on an interest only mortgage loan. Double-check your paperwork to make you sure you can pre-pay and if you can, try adding a few extra dollars to your payment to lower your principal amount due. Check out these calculators. By paying an extra $100 a month toward the principal of a $150,000, 30-year mortgage with a fixed interest of 6.5%, you’ll save more than $51,000 in interest! An extra payment of $25 a month can make a difference!

2) If you are currently in an adjustable rate mortgage consider refinancing into a fixed rate loan. Rates are still low but they are showing signs of increasing again. Instead of getting stuck with a higher payment when your loan is scheduled to adjust, try to find a fixed loan to keep your monthly payments the same each month for the life of the loan.