How to Save Money on Your Mortgage
For most homeowners, their mortgage represents their single biggest monthly expense. Sometimes, these payments might feel like a major drain on your budget. However, with some forethought and planning, you can make your home loan work for you. Strategies like making extra payments or refinancing your mortgage have the potential to save you a great deal of money over the life of your loan.
Make Extra Payments
Making an extra payment towards your mortgage every year will help you pay off your mortgage faster. More importantly -- at least from a savings standpoint -- applying more funds to the principal of your mortgage can reduce the amount of interest you will need to pay over the life of your home loan.
A common strategy is to split your monthly payment into bi-weekly payments. Typically, this means you would pay half on the 1st of the month, and half on the 15th of the month. By the end of the year, you will have made an extra payment. If this prospect interests you, be sure to talk it over with one of our home loan specialists to figure out the best course of action.
If you have made monthly payments on your mortgage for a year or more, refinancing may help you secure a lower interest rate. If mortgage interest rates have fallen since the time you first closed on your loan, refinancing can allow you to take advantage of the downward trend. If you have built up enough equity in your home, refinancing can also give you the opportunity to eliminate private mortgage insurance, providing you with even more savings.
At J.G. Wentworth, we have dedicated ourselves to helping our customers achieve their homeownership goals. With that in mind, the home lending solutions we provide have allowed countless prospective homeowners put down payments on their dream houses without breaking the bank.
Even current homeowners or those looking to purchase additional properties can benefit from the assistance of our home loan experts. There are many ways to save with J.G. Wentworth. To get started, contact us or get a rate quote today.