Who Wants To Be a Millionaire?
Dumb question! At this rate I don't think I'll ever get there. So I guess I'll have to do it the old fashion way... save...save...save... (Not quite as exciting as answering a few questions for a million bucks).
We were thinking of several ways to save a few more bucks and we came across a tip that may help you save thousands of dollars. We thought we would pass it along to you just in case you don't actually win the lottery or qualify for a TV game show.
Here's The Deal!
1. For instance, if you are paid bi-weekly, you can voluntarily make a bi-weekly mortgage out of your existing mortgage and save, save, save! The idea is to pay half of your monthly mortgage every two weeks. At the end of the year, you would have made 13 payments instead of 12. Viola... one extra payment per year... and that adds up!
•2. If you are paid twice a month or monthly, simply divide the monthly payment (principal and interest) by 12 and add that number to each mortgage payment. This will make the terms of the loan reduce from 30 years to 18-22 years. The savings will be phenomenal.
Simply by making a 15-year loan out of a 30-year loan will save you thousands over the life of the loan. And, if you ever decide to sell before the loan is over, imagine how much equity you would have accumulated when you sell your home.
Well, you'll probably never see me on one of those crazy, "Win A Zillion Dollar" game shows, but I'm on my way to pay off my 30-year loan on the 15 year plan. That will save me a bunch in the long run.
If you are still a little confused about the 15/30 mortgage plan, please give us a call and we can refer you to one of our preferred mortgage counselors who can look at your payments and help you make a good business decision about your loan.