Did you know bi-monthly payments can take 8 years off of your mortgage?? That's right, make half of you payment twice a month you can save 18-30% in interest during the life of your loan. Essentially you are making 13 payments instead of 12 because of 52 weeks in a year, and 26 half payments annually, or 13 monthly mortgage payments instead of 12. You will get extra principle paid.
Do not just start sending in your payments bi-monthly though! You will need to see if your lender offers this option so it can easily be set up and applied correctly. Many do offer this option upfront. Otherwise, your extra payments will not be credited to principal, you would only be paying ahead. If your lender does not offer this option, you can do it yourself a couple of ways.... You can add 1/12 of your monthly payment to each payment as additional principal, or you can pay an additional payment during the year and advise the lender to apply to your principal.
An easy way to cut years from your mortgage!
Author:Ginger Smith Phone: 803-932-8155 Dated: February 12th 2015 Views: 1,032 About Ginger: Hello, I am Ginger Smith with Exit Midlands Realty. We serve areas of Columbia, Lexington, Chapin, N...
Chapin, SC is known as "The Capital of Lake Murray" and with good reason. The residents of Chapin enjoy a relaxed lifestyle with the convenience of the city. Columbia, SC is just a quick 20 minute drive and shopping is even closer.You are embarking on an exciting journey, be sure that you find agents that will take time and share your enthusiasm during this process.
EXIT Midlands Realty is a full service real estate firm dedicated to assisting our clients with the purchase and sale of real estate in the Greater Columbia Area. We were founded in 2005 and quickly grew into one of the most innovative and knowledgeable firms in and around Columbia. Our staff is made up of full time professional agents that are dedicated to the profession of listing and selling real estate.
Call one of our experienced agents to assist you with your real estate needs. It would be an honor to work with you.