Make an extra payment
One of the simplest ways to start paying down your mortgage is to make one extra payment each month. Most lenders today do not have pre-payment penalties and just by making one full additional payment during the year could take about four years off of your loan.
Add onto your payment
Even adding as little as $100 onto your payment, applied to your principal, over the life of the loan, you could take five years off and pay tens of thousands less in interest!
Refinance into a shorter term
Refinancing from a standard 30-year loan to a 15 or even 10-year term could save you thousands in interest, especially if you locked in a rate when they were much higher.
It's also important to note that you will need to pay one-time closing costs again to refinance, and your payment each month will likely be much higher than you're used to due to spreading out your loan amount over a smaller amount of time.
Feel free to contact me with any questions you have about buying a home in Lexington MA and beyond this year or for a list of available homes in the area.
Theresa D'Antuono
