How to save money on a mortgage even if the interest rate is not at historical lows? It does not require upfront costs. Savings can come without actually decreasing your interest rate by simply increasing the frequency of mortgage payments. It is possible to pay your monthly mortgage payments bi-weekly or tri-weekly . This can to save thousands of dollars in total debt all while decreasing the length of your mortgage and not squeezing your wallet by making payments two or three times instead of once monthly.
Consider the following example: if you have a $400k mortgage on a 30-year plan with 4% interest, you’ll be able to expect a monthly payment of $1,910 and an annual total of $22,920. By paying bi-weekly, you’ll pay $955—half the monthly payment—every two weeks, with the annual total totaling around $24,826. If you continue on this plan for all of the 30 years, you’ll save $40,000 on interest along with 4 entire years off your payment plan. Something to consider next time your mortgage payments are due. It’s never too late to start. Contact me at 925-216-3618 today to calculate how much you can save by making this change.
