April 7, 2022
3 Moves to Pay Off a Mortgage Quicker
Find out how to accelerate the process of paying off your mortgage.
Refinance your loan
Many things can change during a 30-year mortgage term. By refinancing, your current mortgage is replaced by a new one which allows you to negotiate a lower interest rate and reduced interest payments over the total life of the loan. Although this option is not realistic for everyone, consider taking on a higher monthly payment if your income has increased since you took out your mortgage. Consider reducing your loan term by half and making larger monthly payments, or keeping the loan term the same and just making larger payments. For great rates on mortgages, visit a Citizens First Bank loan expert at your local branch.
Cut out private mortgage insurance
Are you currently paying private mortgage insurance (PMI)? PMI is a mortgage insurance that protects the lender – not you. Request to have your lender remove it if you have met the loan-to-value ratio requirement on your mortgage. You can make this process go faster by increasing your home equity with upgrades and an appraisal.
Windfalls and budgeting options
Use extra cash to chip away at your mortgage when you have the opportunity. Bonus checks, stimulus payments, tax returns, and inheritance money can contribute to your payments without upsetting your monthly budget. Have a tight budget? Consider paying just $100 extra in addition to your mortgage payment each month. If you can fit any extra payment into your budget, it is well worth the savings in interest payments.
For more mortgage resources visit your local Citizens First Bank in person or online. Our experienced team can help find the right plan for your future finances.