Hi, everyone! Melanie Cameron here with The Cameron Team, Coldwell Banker Sea Coast Advantage in Wilmington, NC We're continuing this year to put out a lot of videos for buyers and sellers on tips and tricks of how to buy, how to sell, how to save money
Today, I wanted to talk to about how to save money on your mortgage There's several ways that you can do that and I just wanted to point them out real quick One thing you can do is round up your monthly payment So if your payment is $820 a month, round up to $900 That extra $80 will go directly toward your principal and save you thousands over the life of your loan
Another thing you can do is if you make one extra payment a year, so if you make 13 payments, and that 13th payment is strictly toward your interest, it really takes years off of your mortgage That 1 extra payment a year will take a 30-year mortgage down to a 25-year mortgage, so that should take 4-5 years of your mortgage and, again, save you thousands of dollars in interest Another thing you can do, if you didn't put down 20% when you bought your home, you are probably paying PMI (Private Mortgage Insurance) Once you get to that 20% equity in your home, you can petition your mortgage company to drop that mortgage insurance on your loan That will probably save you $100-$150 a month
That, again, is money you can put toward the principal to save on those extra interest payments You can also refi your loan if the terms are more preferable now than when you bought and the interest rates have gone down Look into refinancing You can refinance into another 30-year loan mortgage and have a smaller payment or potentially refinance to a 15-year mortgage I would recommend talking to your lender to see what is the best fit for you, but it's a great idea and another option for you to save money
If you have any questions or comments, reach out to us at 910-202-2546 or check us out any time at TheCameronTeamnet Have a great day!