The interest you pay on any financed item doesn’t compare to the amount of interest you will pay on your mortgage loan. With that said, one of the most important things you can to do to be proactive in achieving financial stability is paying down your mortgage. Did you know you can take years off of your mortgage loan with one simple strategy? Making an extra payment to your mortgage can save you thousands of dollars. Just one payment can make a considerable difference in the total that you pay for your home. It can also shave years off your mortgage payments.
Most people get paid every two weeks. This means two times per year, some will have three paychecks per month. Those extra paychecks can easily be applied to your mortgage to lower the amount you still owe. In fact, many mortgage companies will allow you to set up a bi-monthly payment schedule that will withdraw half of your monthly payment every two weeks. With proper budgeting, you will not notice a strain on your finances from that additional payment. Make sure your lender allows you to apply this additional amount paid to your principle and not just your interest for this time frame. Tackling the principal is crucial to making a significant change in what you owe.
If you are having a hard time coming up with your minimum mortgage payment or find yourself living paycheck to paycheck, this strategy may not seem applicable to you. You may need to adjust your monthly spending or learn more about how to reduce your interest rates on your unsecured credit items. This can mean negotiating a lower monthly payment on your credit card balances or seeing if there is a promotional interest rate you qualify for.
If you need assistance finding extra funds when you feel like your money is too tight for comfortable living, PCS Debt relief can help. Our advisors are experienced when it comes to helping clients faced with too much money going out and not enough coming in. We will listen to your needs and find a clear solution to best fit your needs. Call us now at (636) 209-4481.