As soon as you start paying your monthly mortgage, you probably only think about it only once a month, or probably not even if you are on auto pay.
But there is actually a good reason why you should pay closer attention to your Randolph County NC mortgage, just as you do with your financial planning. What most people don’t know is there are ways you could save money on your mortgage. So here are a few tips on how you could make your monthly mortgage a part of your wealth-building strategies by saving money from it:
1.Take advantage of low interest rates.
Keep yourself informed and aware of current interest rates. With the today’s interest rates going lower, it makes sense to refinance, even if it’s just a single percent lower. A drop of even just one percent in the Randolph County NC mortgage rate can mean a huge difference in savings for you.
2. The sooner you pay, the faster you can build wealth.
Nobody wants to pay a larger amount of cash upfront than necessary, but paying extra money now will actually save you a lot of cash later on. If you could make just one extra payment every year, you will end up owning your Randolph County NC home sooner, and those monthly payments could now go into your savings.
If you can’t afford it, then think of setting up paying half of your monthly mortgage amount every two weeks instead. That sums up to 26 annual payments, which equals 13 monthly payments. Make sure to confirm with your lender that the extra monthly payments go toward the principal and not the interest.
3. Keep your eyes on the equity
The extra insurance for a PMI payment isn’t cheap, so why prolong this extra payment a month longer than needed? Law requires a lender to stop charging you PMI for your Randolph County NC home once you gained 22% equity in your home. But in most cases, once you reach 20% equity, you can actually ask the lender in writing if they could allow you to stop paying your PMI, and in most cases, the lenders are willing to grant this request.
Your Randolph County NC home is one of the largest investments you will ever make, and each dollar you spend on it should be spent wisely. If you have a question about real estate, I am just a call away to give you friendly advice and assistance!