Best Practices for Paying Off Your Mortgage

Best Practices for Paying Off Your Mortgage

Best Practices for Paying Off Your Mortgage

Your mortgage totals hundreds of thousands of dollars, so you best have a plan on how to deal with the payments!

Choosing the right mortgage can be fairly challenging, but it’s the first of many hurdles in this marathon that stands between you and owning your very own home outright. Once you have your mortgage locked, you then have to decide how best you’re going to pay it off—without exhausting your financial resources. Here are some things you should consider when trying to pay off your mortgage in the most efficient way.

Making Extra Payments

Just like you made/can make extra payments on your student loans, you, too, can make extra payments on your mortgage. Some borrowers opt for a 30-year mortgage even when they think they can afford a 15-year. They choose this because if they have the surplus cash, they can make additional payments but, should money be a little tight, they can suspend this option and pay the minimum amount.

Mortgage Points

Mortgage points are little different than the points you obtain from gathering coins in Bowser’s Castle. Your points are a percent of the mortgage principal; 1 point is worth 1 percent of your overall loan, and is a great way to reduce your interest rate. Buying 1 point now will lower your interest rate one-eighth to three-eighths of 1 percentage point. It may not seem like a lot, but when we’re talking about hundreds of thousands of dollars, these percentage points can make a real difference!

Paying off your mortgage is a part of being a homeowner, so it’s important to utilize every piece of information you can! For all of your home loan needs throughout Solana Beach and San Diego County, as well as all of California, contact Elvin Wesley at Ranch & Coast Mortgage Group Inc. We have the experience needed to make sure you get the right mortgage.