Wednesday, February 5, 2014

Pay Down your Boston Home's Mortgage

You don't have to go to extreme lengths to pay down your mortgage quicker. It may seem impossible but there are manageable ways to pay down your Boston home's mortgage without feeling financially overwhelmed. Here are three options to pay down your mortgage that won't sting so bad.

Make an extra payment now
It seems obvious to make an extra payment when you can. But, you can benefit the most when making the extra payment in the beginning of the year. The earlier you pay down in the year, the less interest you will accumulate throughout the year. Depending on your current loan it is possible to shorten your mortgage payoff by a few years.

Refinance
Consult your mortgage lender about refinancing. If you've owned your Boston home for several years you could benefit quite well from a refinance. Rates are low enough that you could save enough on your monthly payments to either invest back into your home or to help make those extra monthly payments. Make sure to consider shortening the loan term during your refinance. Depending on your current rate you may keep a similar monthly payment but shorten the duration of the home loan in half.

Round up your monthly payment
Check out your monthly budget and see if you have room for an extra 100-200 dollars to go toward the mortgage each month. Don't worry about exact numbers and round up your payment to the next $100. For example if your monthly payment is $1830, round up to $1900 or more, if you can afford it. The little bit each month will eventually shave years off of your mortgage.

I hope you can utilize these manageable ways to pay down your Boston home's mortgage early without too noticeable of a dent in your bank account. If needed, start small and see how it affects your monthly budget. Please know I am only a click a way if you have any Boston, MA real estate needs. I look forward to hearing from you soon!


Lucas Garofalo
Keller Williams Realty
(617) 861-3631
Lucas@LucasBostonHomes.com

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