Unconventional Ways to Save on the Mortgage on Your Dallas Home

Are you making the most out of your mortgage?  While there are several ways for you to save money on your mortgage, some aren’t as common as the rest.  If you want to save a few bucks on the mortgage on your Dallas home, keep these unconventional money-savers in mind and make sure you contact a qualified mortgage professional for more ideas.

• Payments are made monthly on a mortgage; however, there is no rule saying that you can’t make a 13th payment on your mortgage. Making an extra payment on your mortgage every year can cut some serious time off of its overall length.  In fact, if you make that 13th payment on your mortgage every consecutive year, you can shave up to 6 years off of your Dallas home’s mortgage, depending on the amount you’ve borrowed.  This strategy can easily be accomplished by making bi-weekly payments.  The 2 payments per month add up to the 13th payment!

• If the fact of the matter is that you have a tight, strict budget that a 13th payment wouldn’t fit into, or would make too complicated, round up your payments to the nearest hundredth.  Doing this won’t be as detrimental to your budget and will help chip away faster at the mortgage on your Dallas, Texas home.  Let’s say your payment is $915—round it up to a clean $1,000, as this small increase can make a huge difference over the life of your loan.  In fact, the Federal Reserve Board calculated that if you put an extra $50 on your payment every month, it adds up to almost $30,000 in savings throughout the life of your loan for a 30-year loan with a 6 percent mortgage interest rate.

• If you plan on paying a large amount towards your mortgage (principal reduction payment), contact your loan servicer first.  Some lenders allow a recast of your loan after a lump sum principal reduction payment.  That means they will recalculate your mortgage payment based on the new balance of your loan.  This can not only reduce the monthly payment, but can potentially help save thousands of dollars in interest.

For a helping hand throughout the mortgage process for your prospective Dallas home, please don’t hesitate to get in touch with us, 972-499-0454 – or contact us today!