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Below are a few tips I give my clients through out their mortgage term that I recommend to anyone who has a mortgage. These simple tricks can pay your mortgage down much faster than you would think!
#1. Once you move into your home, give your self approx. 3 months to adjust to the payments, if they work for you, see if you could handle rounding the payment up to the nearest dollar - for example - if you are paying monthly at $1412.00 per month see if you could handle $1500.00 per month or even $1450.00. It is a bit more money each month but it can take years off the term of your mortgage.
#2. If you are on monthly payments, try to change your payment frequency to bi-weekly or better yet - weekly payments, again this can take years off your amortization and help you be mortgage free faster. If you change to Semi monthly this will not make any difference as it just divides the monthly payment by two so the same amount of money is going down on the mortgage as if you were doing a monthly installment.
#3. If it is possible, take advantage of your pre-payment options that come with your mortgage. Lenders typically allow you to put down 10% - 20% of the mortgage amount down each calendar year directly onto principle, now you are saving a bundle on interest and you guessed it - on the road to being mortgage free faster!
For more tricks or to ask any questions in regards to mortgages, contact Amy Wilson - yourmortgagegirl, anytime!