Rising Rates!

Who doesn’t want to save a little anywhere they can? I know I do. I want to share a few ways that you can save on your mortgage. With rates expected to climb a little this year, it’s becoming top of mind with many clients. 

Here’s the bottom line: just because you have a loan structured when you first purchase doesn’t mean that it’s set in stone for the life of the loan. There are ways to restructure your loan to pay it off earlier than initially planned, save money on your monthly payment, or to free up funds. Here’s a snapshot of a few options for each scenario. 

Pay Extra to Pay Off Early

There are several ways to pay off your mortgage ahead of schedule. 

 • Pay extra each month

 • Set up bi-weekly payments

 • Make an additional mortgage payment once throughout the year

 • Divide the monthly payment by 12, then add the extra to each month

Recast Your Mortgage

If you want to lower your monthly payment and have the cash to do it, you can recast your mortgage. This means you lower your principal – not the term or your interest rate.

Refinance Your Loan

This is probably the most popular way to restructure a loan. Refinancing is when you’ll replace your current mortgage with a new one at a lower interest rate. The lower interest rate will help lower your monthly payment.