Thursday, June 28, 2012 - Article by: Joe Metzler, MLO. NMLS #274132 - Mortgages Unlimited, Inc -
A Trick to Pay Off Your Mortgage In Half The Time
Minneapolis, Minnesota: Sounds like a claim you might see on a SPAM E-Mail you receive. The fact is, smart people are doing this everyday to pay off their mortgage in half the time and there is nothing special about it.
What is it you ask? Easy, simply shorten your term to a 10-year or 15-year mortgage loan.
Many homeowners are thinking of refinancing to today's historically low mortgage rates here in MN, WI, and the rest of the country. Great, yet many people make the mistake of refinancing back into another 30-year loan. Sure, you may save a few hundred dollars, but how much is it going to cost by adding back all those years? How about retirement? Wouldn't it be nice to go into retirement WITHOUT a mortgage payment?
By lowering your term, you get a better interest rate than on a 30-year, and you save untold thousands of dollars in interest.
Fear of higher payments on the shorter term loans keeps many people from selecting this mortgage savings option. But a quick peak at a mortgage calculator can show you the savings - and I'll bet most people can easily afford the payment if they simply put their mind to it.
Didn't find the answer you wanted? Ask one of your own.