Credit Loans and Mortgage Home

Biphoo

3 Jun 2017

217 Views

6 Technical To Pay Your Mortgage Early

Owning a home is probably one of the most desirable financial goals. Many can not pay full price with their own funds, so we must turn to mortgage loans. But how easily out fast and that debt? That is, we pay a down payment and pay the rest and we should cancel the bank for decades, paying fixed monthly letters covering principal and interest. Banks usually do not have but I know there are ways to reduce the time your mortgage is canceled, saving thousands of dollars in interest? That is why here I share six techniques to pay your mortgage early. Remember to check your contract and talk with your bank to find out if you can apply, as each case is different:

1. Pay 10% more every month: For purposes of example, let’s assume that your home loan is the US $ 100,000 for 30 years and the interest rate is 5% and the loan shall come into force December 2017. Depending on the bank fees and other applicable charges, the monthly letter can be more or less US $ 536.82. Suppose that this is to calculate. If instead of paying this sum to pay US $ 589.82 (amounts to 10%, ie $ 53.00 for monthly letter), you end up paying the mortgage in 5 years 5 months earlier and saving $ 19,397.33 in interest over the term of Home Loan.

It is important that you make an additional payment to capital. Each bank has its own policies, but usually, have to approach personally to the branch and fill out a separate form detailing this and do two separate deposits or payments.You pay the monthly letter and Other equity paying an additional sum.

2. This technique is similar to the first because it requires you to pay a little more each month. However, I want to show that just paying a little bit more every month, enough savings in the long run. In our example, if instead of paying monthly pay US $ 536.82 $ 540.00 US $ 3.18 applying the difference to capital, loan cancelarías four months before and would save the US $ 1480.55 in interest over the term of the loan.

3. Pay an additional letter once a year: Following our previous example, if you decide to take part of your tenth or bond to pay the principal, ie paid US $ 536.82 once a year every year, cancelarías debt 4 years and 7 months before and you would save the US $ 16,349.25 in Low-Interest Rates Home Loans.

4. Payable only once using extra money: If for any reason you have access to additional money (time bonus gift second job, inheritance, award, etc.) you can pay to a principal. In our example, if you fertilize it once the US $ 5,000 a principal debt a year after its start and continue paying the monthly letter, you end up paying the loan three years before and would save US $ 14,711.10 in interest over the term of the loan.

5. Refinance your mortgage: I suggest you do your homework and ask the market rates for the current mortgage. Talk to your bank to see how you can improve or they consider whether you should transfer the loan to another bank. Note that there may be penalties or fines for doing so. Simply review the contract. If you can lower your monthly payment, is budgeting your original lyrics only must pay the difference to the capital following the policies of your bank to have this done.

6. Combine techniques: You can combine one or more of the techniques I describe here to achieve that cherished dream of living without a mortgage. On the Internet, you can find many calculators you can calculate different examples.Many financial experts argue that paying off a mortgage early is not appropriate to assume that because you have a lower interest rate than any other Apply Online For A Home Loan and the money you use to pay off the mortgage early can invest in products that perform better.

Biphoo

3 Jun 2017

217 Views