Is your 30-year home loan hanging over your head? Good news! It doesn’t have to. You can shorten that loan and shave thousands of dollars in interest payments with mortgage refinancing.
One method of shortening your mortgage term is to make biweekly payments. This will eliminate years off your mortgage because you’re essentially cutting your payment in half and paying each half more often – every other week – which adds up to an extra payment every year.
You’ll be making 26 biweekly payments every year which translates to 13 rather than 12 monthly mortgage payments. It may seem simple, but that extra payment every year significantly reduces your total interest over time, and most people never notice the difference in monthly expenditures.
Still not sure? Speak to a lender like Golden Oak Lending today for details on how you can set up a biweekly payment plan.
On the flip side, another method frequently employed is to pay more each month, saving interest considerably in the long term. You can pay off your loan quicker too.
Golden Oak Lending can advise you further if you like this option. In some cases, if you can swing an even greater payment each month, it might make sense for you to consider a shorter loan. For example, switch from a 30-year loan to a 15-year loan.
In this case, you may be positioned to make a one-time loan payment that shaves years off your initial 30-year mortgage. For instance, you may come into a lump sum of cash through a variety of ways:
How do these single large payments affect your loan? You can save significant dollars in interest and also pay off your loan earlier. Not only that, your future payments may be lowered as well.
Reach out to a mortgage lender like Golden Oak Lending and ask how you can save thousands of dollars with mortgage refinancing. It’s fast, simple and can greatly improve your financial situation.
Contact us today and see how our rates can save you money!