Achieving Your Mortgage Goals

So you’ve done everything: you’ve gotten pre approved, found your dream home, made an offer, and gotten through closing. You’ve even moved into said dream home and are ready to get on with the rest of your life. That’s it, right? Well, it doesn’t have to be. There are certain goals you can set for yourself when it comes to handling your mortgage for the next thirty years. 

Early Payoff

Commit to making half your mortgage payment every two weeks. Because there are 52 weeks in a year, the way this works out is that you’ll actually end up making 13 total mortgage payments in a one-year period. Doing this will help you pay your mortgage off a full seven years early! That’s a LOT of savings on interest. Of course, do your research first to ensure your mortgage lender does not have a prepayment penalty. 

You can also choose to round up your payment to an even number, be it an even hundred or even thousand. You may not pay off seven years faster but it will certainly add up over time!

Lower Your Actual Payment 

Finding ways to lower your actual mortgage means extra money in your pocket for other things. You can refinance your mortgage during seasons when interest rates are low. You may think that even though you just purchased your home that it’s too early to refinance. That’s not true! Any time rates are low is a good time to talk to a mortgage lender. 

You can also set a goal to end your private mortgage insurance (PMI). Generally, if you put down less than 20% as a down payment, you pay PMI until you reach 20% in equity. You’ll reach that threshold sooner by making more payments, thus reducing your payment once you’ve reached that equity threshold. 

Don’t forget that mortgage interest is one tax break available to homeowners. 

Do Nothing 

That’s right! Maybe your mortgage goal is to lock in a great interest rate, make your payment on time every month, and enjoy your dream home. You worked hard to get here! Now you can soak it all in. Congratulations!