Seventh Step to Creating Your Financial Plan:
Paying off Your Mortgage
You’ve set up your budget, paid off debts, and started saving for the future – both for yourself, and for your children’s education. So what’s left? The one remaining debt you thought would hang over your head for years and years to come – your mortgage. It may seem like an impossible feat, but there are ways to pay off your home years before the end of your loan.
Increase your payment. It can be as simple as rounding up from $846 to $850 or even $900 each month. Not only will the added payments help chip away at your total principal amount, but the more of your mortgage you pay down each month, the more goes toward principal instead of interest. You could easily shave a few months off the life of your loan just by rounding up a few dollars each month.
Make extra payments. If you receive extra income such as a holiday bonus, commission check, or even your income tax return, put it toward your mortgage. Make sure any extra payments you make will go toward principal only, and also check for any penalties for early repayment of your loan. There will be time to spend it on splurges like a vacation when your house is paid off!
Pay bi-weekly instead of once a month. If you pay half your mortgage every two weeks, instead of once a month on the due date, you’ll actually make one extra payment each year. Over time this can shave about six years off a 30-year mortgage! Again, you’ll want to be sure bi-weekly payments are allowed in the terms of your loan and that your extra payment will go toward the principal amount.
Refinance your loan. If you have a standard 30-year fixed mortgage, you may be able to refinance with a 15-year loan and only pay a slight bit more each month. Several factors come into play in this scenario, but WPCU’s mortgage originators will show you sample payments and options.
If you’re ready to take the next step, meet with a member of WPCU’s mortgage team at your Member Center to see which option may be the best for you. Our experts can help you on your way to being totally debt free! Call (937) 912-7000 to schedule your appointment today!
Mortgage loans processed and underwritten by myCUmortgage, LLC — a wholly-owned subsidiary of Wright-Patt Credit Union, Inc.All loans subject to credit approval and property appraisal.
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