Is The Save Money On Your Mortgage Real Estate
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Well I do and it is the easiest way possible. You just have to take your once a month payment and split it into two payments each month. That's right no pain just one extra step each month and you will save big money over the life of your mortgage. Now, let’s go build your dream home and save some money while you do it. Here are all the ways you can save money while building your dream home! Know Your Mortgage Rates. Right now is arguably the greatest time ever to buy or build a home because mortgage rates are the lowest they’ve been in history. Government Mortgage Relief Programs Loan Modification. The purpose of a mortgage loan modification is to get your monthly payment to a more affordable level. An “affordable” mortgage payment is typically defined as 31% of the borrower’s monthly gross income. This is achieved by modifying one or more components of your mortgage.

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Homeowners looking to cut their overall mortgage debt can get the job done by doubling the number of payments they make to their mortgage company every year.

The practice is called bi-weekly mortgage payments, a strategy where mortgage loan customers pay their mortgage loan every two weeks, instead of once a month. The idea is to chop down your mortgage payment more quickly, and in the process, lower the amount of interest you pay on your mortgage overall. (For more on how interest and APRs actually work, read this.)

The numbers back that sentiment up.Homeowners looking to cut their overall mortgage debt can get the job done by doubling the number of payments they make to their mortgage company every year.r (13 payments—based on 26 bi-weekly payments each year, versus 12 monthly payments).

Savings add up with bi-weekly payments

Consider a traditional 30-year mortgage of $200,000 with an interest rate of 6.5%. Normally, that would require the homeowner to make a monthly payment of $1,264.14. By using a bi-weekly payment plan, the homeowner would pay $632.07 every two weeks and, in doing so, cut six years of payments off of the mortgage loan and save $58,747 off the total amount of the loan. (Looking for help refinancing your mortgage? Read this.)

“A bi-weekly payment plan is far more effective than merely sending one additional payment per year,” says Michael Hausam, a realtor and mortgage broker in Newport Beach, Calif. “Your loan balance accrues interest every day and reducing that principal balance every 14 days (26 half payments per year) saves more in interest charges than one full additional payment every 12 months, even though the total amount in payments every year remains the same.”

Lisa Orban, an author, and an Illinois-based homeowner has been a regular bi-weekly mortgage payment payer since she purchased her residence and has a good reason for the strategy.

“I pay bi-weekly for a number of reasons, but the primary one is almost immediately more money is put towards the principal rather than the interest,” Orban says. “The payment on the first of the month more goes towards interest, but the payment on the 15th shifts and more money is put towards the mortgage loan principal.”

It's important to note, however, that not all mortgage services allow bi-weekly payments. To find out where you stand, reach out to your lender and ask about your bi-weekly mortgage payment options. If they are permitted, then you lender can walk you through the process of setting up the new payment plan.

Alternatives to bi-weekly mortgage payments

Bi-weekly mortgage payments aren’t the only way to save money long-term on a home mortgage.

“I like three different scenarios,” says Elisa Meyer, a former real estate agent and personal finance specialist with At Your Pace Online, a digital-based education services provider. “Each can help you save money on your mortgage.”

Come up with a way (whatever works for you) to set aside the money every two weeks, and then pay that money toward the mortgage each month.
Use your year-end bonus, tax return, or other “windfall” money to make one extra payment each year.
Take your monthly mortgage payment, divide it by 12, and add that amount to your monthly automatic payment. You'll make an extra payment every year.

This story originally appeared on Experian News and was syndicated by MediaFeed.org.

One of the best reasons to refinance your mortgage is to save money. There isn’t any reason you should be paying more for your mortgage than necessary. That’s is why looking at the options for refinancing your mortgage is a smart idea.

Your finances change over time, and the mortgage terms that were available when you purchased your home may not be serving your current needs.

Let’s examine 5 top reasons for refinancing your mortgage and how it can save you money:

Why should I refinance to a lower interest rate?

Lowering your interest rate lowers the amount of money you pay each month and the total amount of interest you will pay over the term of the loan. Refinancing to a lower interest rate means paying less interest on your mortgage.

How can refinancing to a lower interest rate save me money?

Interest is the primary way that banks earn money by lending you the funds on your mortgage. When your mortgage has a lower interest rate, you are getting a better deal. Paying less interest on your mortgage is one of the best ways to save money on your mortgage.

Why should I refinance to a shorter loan term?

Conventional mortgages most often have 15, 20, or 30 year payoff terms. The longer your payoff term is, the lower your monthly payment is going to be. However, a longer payoff term also means that you will be paying interest on the borrowed amount for longer.

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How can refinancing to a shorter loan term save me money?

When you refinance from a 30 year mortgage to a 15 year mortgage, you will pay less total interest over the term of the mortgage. 15 year mortgages also often come with a lower interest rate. With a lower interest rate and a shorter payoff term, you can potentially save thousands over the life of the loan by refinancing.

Why should I refinance to a lower monthly mortgage payment rate?

If your financial needs change during your mortgage payoff term, you can consider refinancing to a lower monthly mortgage payment. This may be beneficial in giving your cash flow more flexibility.

How can refinancing to a lower monthly mortgage payment save me money?

By refinancing to a lower monthly mortgage payment, you can potentially free up some room in your monthly budget. Although refinancing to a lower monthly payment is not likely to save you money over the life of the loan, it can help make your mortgage payments more affordable.

Why should I refinance to drop my mortgage insurance rate?

Mortgage insurance is required on different mortgage programs if the loan to value ratio is greater than 80%. Mortgage insurance protects you and the bank in the event that you may not be able to make a payment. However, mortgage insurance can cost $2,200 per year on average.

How can dropping mortgage insurance premiums save me money?

Once your mortgage is eligible to drop the mortgage insurance, refinancing to a loan without MI can save you thousands over the life of the loan.

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Why should I refinance to use cash from my home’s equity?

Many home owners use the equity in their home to pay off higher interest debt. You could also use cash from your home equity to invest in higher education or home improvements. Read about smart ways to use your home equity in this linked article.

How can a cash out refinance save me money?

Credit cards, personal loans, and other types of higher interest debt can be paid off with your home’s equity. This allows you to consolidate your debt into a lower interest mortgage. You will save money on interest by utilizing lower interest financing options.

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