Most buyers would love to have a more affordable mortgage payment. Cutting costs on your mortgage can translate to getting your mortgage paid off earlier and saving money on interest, resulting in paying less for your mortgage overall.
But when you’re crunching the numbers for your home buying budget and getting pre-approved, it can feel challenging with all the different loan options and tricks.
With these 4 tips, you can make your mortgage more affordable and save money on your mortgage payment.
Tip 1 - Refinance Your Loan: A loan refinance replaces your old mortgage with a new mortgage. Your new mortgage will have a different principal amount and interest rate. This results in a lower monthly payment. If you have a high interest rate, a refinance is a super smart way to decrease the amount you pay in interest and save on your mortgage payments.
Tip 2 - Consider Bi-Weekly Payment Plan: This tactic adds one extra month’s payment that’s applied to your mortgage principal. This can help shave years off your mortgage since you’ll be paying off the mortgage more quickly. As a result, you’ll save thousands on interest by the end of your loan.
Saving money on your mortgage means you can use that money for other things. These tips will help you save money on your home mortgage so you can save the money for a down payment or use it on something like home renovations!
Want to talk more about mortgages and how to save? Feel free to contact me so we can discuss more.
RE/MAX of Lloydminster