Many homeowners don’t realize that a few simple steps can save them paying a lot of interest on their mortgage. In addition, homeowners can actually cut years off their mortgages by making some minor changes to their mortgage payment plan.
So how do you do this? Put simply, when you borrow money for a mortgage you are always charged interest. This interest is added to the amount that you borrow and this interest accumulates. By increasing the frequency of your mortgage payments, homeowners can pay off their mortgages faster and incur less interest over the amortization period.
Most mortgage lenders offer an abundance of options for your mortgage repayment plan. By opting for an accelerated payment (either weekly or bi-weekly), borrowers can make the equivalent of one extra monthly payment a year.
Make sure that you discuss all possible options with your mortgage professional to ensure that you are picking the best possible payment schedule for you. By making minor changes, you can save money and interest and be mortgage free in less time than you realized!
For any real estate assistance in the Oakville, Burlington, Milton area contact Mary at email@example.com