At the beginning of the year, industry forecasts called for home price appreciation to slow to about half of the double-digit increase we saw last year. The thinking was that inventory would
3 Ways to Save $100K on Your Next Home
Dated: December 11 2020
Views: 6
Saving $100K on your next home sounds crazy, right?
Savings like this are life changing and could allow you to do so much more with your future plans. With just a few tweaks to your game plan, it is actually possible.
Paying extra on your mortgage each month will save you thousands of dollars in interest charges and cut multiple years off of your home loan ✂ ?.
Paying down the principal quicker on your home does not decrease your minimum payment each month. However, it will shorten the life of the loan and save you more money than most can save on their own.
Here are three different strategies to pay more each month, resulting in six-figure savings!
1. Increase Your Monthly Checks by One-Twelfth
Some people do not know this, but the largest part of your early year payments go towards paying interest. If you pay a little extra on your principal now, this will make a significant amount of savings down the road.
The additional 1/12th of your monthly payment will decrease the balance on your current principal and likely avoid some of those interest charges.
2. Make One Extra Payment Per Year
If you get an annual bonus or a nice size tax return check, use it to pay one extra mortgage payment each year. You will cut the life of the loan significantly and save thousands in interest.
3. Pay Half of Your Monthly Payment Bi-Weekly
This takes a little more effort, but you could authorize an automatic transfer from your checking account to savings account bi-weekly. You will have made 26 half payments, which will become 13 full payments at the year's end. This is one extra month's payment.
Look How Much You Can Save
Want More Real Estate Tips to Save?
We've got plenty to share with you! How can we help?
Carmen Johnson
Co Owner of the Red Door Team Carmen has been born and raised in Snohomish. Is married, owns a home in downtown, has a Goldendoodle and is expecting her first child in April! Loves spending time with....
Latest Blog Posts
Homeowners ready to make a move are definitely in a great position to sell today. Housing inventory is incredibly low, driving up buyer competition. This gives homeowners leverage to sell
A recent Survey of Consumer Finances study released by the Federal Reserve reveals the net worth of homeowners is forty times greater than that of renters. If you’re
A good bathroom cleaning routine should be more than a hard-surface wipe-down. Make your space a sanctuary of cleanliness by adopting a more rigorous process for disinfecting and cleaning. A little
