You can reduce a 30-year mortgage term down to 22 years without using a lender. All you have to do is make one extra payment per year.
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Everyone wants to know what the rate of a mortgage is and what the terms of that mortgage would be when purchasing a home. However, there are some things you can look at after you buy a home and consider before getting that mortgage.
One of these things is the length of the mortgage. Most buyers opt for a 30-year mortgage because of the cheaper payments. The other option is a 15-year mortgage, which you could pay off in half the time, but that would require much higher payments to do so.
How can you split the difference and reduce the length of a 30-year mortgage down to 22 years?
One simple way of doing it is making one extra payment per year. If you’re making 12 monthly payments, then, you would make 13 for the year. You can also divide those payments over 12 months. For example, if your mortgage is $2,400 a month, you’re going to need to pay an extra $2,400 for the year, so each month would require an extra $200.
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You will save thousands of dollars
in the long run.
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in the long run.
This will make a significant difference and save you tens of thousands of dollars in the long run. If you don’t have it in your budget to spare the extra payment for a particular month, you could always just make it up the next month. You’re not obligated to make those payments like you would be in a 15-year mortgage.
If you have any questions on this topic, please feel free to give me a call or shoot me an email. I look forward to hearing from you!
