Your Lake of the Ozarks Mortgage Lender: how to pay off your mortgage faster

Thursday, October 7, 2021

5 Tips to Pay Off your Mortgage Sooner

Purchasing a home at Lake of the Ozarks is a big investment, and most likely the most valuable asset you have because your mortgage at Lake of the Ozarks is often your largest debt. Depending on the terms of your loan, you are adding thousands of dollars more to the price of your home. The faster you can pay off your Lake of the Ozarks home loan, the more money you are going to save. Not only will you no longer have the burden of that huge monthly payment, but you will have security in owning your own home. Today's blog from your favorite Lake of the Ozarks mortgage lender offers several different ways that you can pay off your mortgage sooner!

1. Make a Larger Monthly Payment

An easy way to pay off your mortgage faster is to add a little extra to each of your monthly payments. Whether it be $10 or $100, choose what you can comfortably afford because every little bit helps. Use a mortgage calculator to see how adding just a little to your payments can save you money in the long run. When you pay extra, make sure that it is being applied to your principal and not set aside for the next month's payment. By paying down the principal, the amount that your interest is calculated on decreases. You should also check your contract before making extra payments, as some have prepayment penalties.

2. Pay Every Two Weeks

Rather than making one payment a month, consider paying biweekly. This method of payment takes advantage of the fact that there are 52 weeks in a year and only 12 months. When the year is over, you will have made 26 half payments, which is the equivalent of 13 full monthly payments. Check to see if your bank will set up a biweekly payment plan. Some will do it for free and some will charge you for it. Be sure to have the bank credit the extra payments toward the principal so you save more on interest; some banks will hold the extra payments until the end of the year and therefore, your still paying interest on that amount.

3. Apply Any Extra Cash You Get

Tax season is a great time to reduce the principal on your Lake of the Ozarks mortgage. Consider applying your next tax return towards your mortgage principal. If you receive any other larger sums of money throughout the year, maybe as a holiday bonus at work or a commission check, consider applying those amounts to your mortgage principal as well. The more you can pay upfront, the more you will save in the long haul and the faster you will be able to pay your home off.

4. Refinance Your Home

Refinancing your home at Lake of the Ozarks to either lower your interest rate or shorten the term of your loan is another great way to get your home loan paid off faster and save money. If you have an adjustable rate loan, you can refinance to get the comfort of the stability that a fixed rate loan offers. Depending on what interest rates are available, you may be able to get a 15 year loan for a little more than what you currently pay for a 30 year loan.

5. Downsize Your Home

If you are struggling to pay off your mortgage, one of the simplest solutions is to downsize. Do you really need 2 spare bedrooms or that extra office space? While having a nice big spacious house is something you've dreamed of, think about how much more enjoyable life could be without all that debt hanging over your head. If your near retirement age or approaching an "empty nest," downsizing makes the most sense. In this economy, it's great knowing that your home belongs to you instead of the bank.

For all of your mortgage questions, I am here to help. You can learn more about your options by talking to your lender today about your Lake of the Ozarks home financing options. Your circumstances may be different now than when your first bought your home. You might be able to get a better interest rate or make a larger monthly payment. Give me a call at 573-746-7211 with any questions you may have regarding your home loan at Lake of the Ozarks.

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Michael Lasson

Senior Loan Officer

NMLS #: 493712

4655 B Osage Beach Parkway

Osage Beach, MO 65065

Direct: (573) 746-7211

Cell: (573) 216-7258

e-Fax: (866) 397-0318

Email: mlasson@fsbfinancial.com

Website: www.YourLakeLoan.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

Wednesday, October 4, 2017

How to Pay Off Your Mortgage Faster

Purchasing a home at the Lake of the Ozarks is one of the biggest investments you'll ever make. Very rarely are people able to cough up that much cash, and therefore, financing is needed. Typically, that mortgage loan will take 15-30 years to pay off. Today's blog from your Lake of the Ozarks mortgage lender offers some advice on how you might be able to pay off that loan a little faster!

1. Simply Pay More Each Month.

If you can afford a slightly higher monthly payment, do it! A great place to start is to divide your monthly payment by 12 and add that amount to your monthly payment. This results in 13 payments in a matter of 12 months. By paying down the principal as you go, you'll not only pay off your mortgage faster, but also save money on the interest. However, before making any extra payments, talk to your mortgage lender at the Lake of the Ozarks to make sure the extra payment is being applied to your mortgage properly. Then always check your next statement to ensure that money has been properly applied. Also, make sure that there aren't any penalties for paying off your mortgage early. This is probably the most simple way to pay off your mortgage faster, as long as you stick with it. However, if you don't have the extra money one month, you're not locked in to paying it.

2. Refinance to a Shorter Term.

Another option would be to refinance your Lake of the Ozarks mortgage loan to obtain a shorter term. If you have a 30-year loan, talk to your lender about refinancing into a 15-year mortgage. Not only will this help you pay off your mortgage faster, but you'll also save on interest. In fact, shorter-term mortgages often carry interest rates 1/4 of a percentage point to 3/4 of a percentage point lower than 30-year mortgages. Keep in mind that with this option, it's like getting a new mortgage. You will have extra paperwork and there are closing costs involved. Before making a refinancing decision, be sure to do the math to determine if the savings outweigh the upfront costs of refinancing. This option is a lot less flexible than just paying extra each month; if you decide you don't have the extra money one month, you're still locked in to that higher payment.

3. Throw Extra Cash at Your Mortgage.

Maybe you don't have enough extra income each month to increase your monthly payments. Do you get bonuses at work though? Did you get a large tax refund? Any extra large sums of money that you get can easily be applied to your mortgage to help pay it off faster. This option allows you pay extra only when you have extra available. You don't want to be struggling financially because you want to pay off your mortgage faster. There needs to be a balance in what you can afford. The only downside to this option is that the payments are irregular and therefore, it's hard to determine a pay off date. You also want to make sure that you don't throw too much of that extra money at the mortgage. Be sure to save some of it back in an emergency fund.

For all your mortgage loan questions, I'm here to help. As your lender, I'll discuss your Lake of the Ozarks home financing options, offer competitive interest rates and back it up with the first-class service you deserve. For all your Lake of the Ozarks home loan needs, give me a call at 573-746-7211.

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