How can you make the most of your mortgage?
Making the most of your mortgage is an incredibly important aspect of being a homeowner. Without proper management, a mortgage can feel like a 30-year prison sentence. Thankfully, it doesn’t have to be this way. You can take control of your mortgage with the right tips.
Re-finance your loans to make the most of your mortgage.
Though the 30-year plan may have more appealing monthly payments, you should know that you will end up paying a lot more in the long run. Every year that your mortgage is being paid off is another year that your loans are collecting interest and that interest can be a serious sum. Now, as you pay off your loans there are four factors to consider: Principal, interest, insurance, and taxes. The insurance and tax numbers will remain the same even if you refinance, but the important factors to note are the interest and the principal. A 15 or 20 year loan repayment plan will not only give the interest less time to accumulate, but banks offer lower interest rates on these plans. If you think that you can afford to re-finance your loans, then do so. It will save you a lot in the long run.
Pay like you’ve refinanced, even if you haven’t.
If you’ve taken a look at your budget and you don’t think that you can refinance your loans you can still pay the loans back as though you refinanced. Why would you do this? Well, once you refinance, your payments will go up which will rob you of what little wiggle room you may or may not have. Furthermore, there will be another round of closing costs to contend with. This can push back your potential to “break even.” Sometimes the right option is simply to pay more with the financing option you already have.
At Residential Title & Escrow and Commercial Settlement Services, we bring peace of mind to the settlement table. If you are searching for a title company to help you through the closing process, please contact us today! You can also fill out our simple online title request form and one of our knowledgeable representatives will get in touch with you promptly. Be sure to follow us on Facebook, Twitter, and Google+ to stay up to date on news, and upcoming events as well as staff and client spotlights!
Tags: mortgage, refinancing