“The most powerful force in the universe is compound interest.” ~Albert Einstein
Interest never sleeps, calls in sick or takes a day off, it is always compounding. At times it can be crushing and destroy people’s lives but if you understand interest and how it works by applying leverage, interest can work for you. You will either pay interest or earn it. Read the following to learn about one of the best strategies to paying off your home early
Find out if now is the right time to refinance! You may be able to lower your monthly payments or reduce the time it takes to pay off your loan. You may also be able to save even more if you use your refinance proceeds to pay off credit card or other installment debt, since mortgage interest is usually 100% tax-deductible, and interest on consumer debt is not.. Here are some important reasons to consider refinancing:
- Get a lower mortgage rate and reduce interest costs.
- Convert an adjustable rate mortgage to a secure, fixed-rate mortgage.
- Consolidate your first and second mortgages into a mortgage with a lower rate.
- Get cash for family wants and needs.
The advantages we offer you for your refinancing needs include:
- Low rates
- Easy online application
- All types of mortgage programs
- Guidance and advice from an experienced loan professional
Do you want to know one of the best strategies to paying off your home early, how to save tens of thousands of dollars in interest and making your Rate Reduction Refinance a very powerful process?
Some suggest that when you do a Rate Reduction Refinance to apply the monthly savings in you monthly mortgage payment to other debts 1st , once you have paid off all other debts then take the payments your were applying to the other debts and apply that same amount to your mortgage payment. This strategy is great but requires discipline, the truth is most people will always have debt and as soon as you pay off your credit card and car loan you will likely be buying that newer car, plasma T.V. or taking a vacation.
Most people refinance their home loan to lower there monthly payment while this is good it is not GREAT. My suggestion is if you do a Rate Reduction Refinance to reduce your monthly mortgage payment that you keep paying your current payment amount. You have been trained to pay this amount already and if you are already paying extra to the principle Great, keep doing that. A Rate Reduction Refinance will only compound what you are already doing thus assisting you to pay off your home loan and saving tens of thousands in interest. While your mortgage is usually a lower interest rate, it is a large loan amount and the sooner you make payments to the principle the less time you will carry that debt. Every dollar financed is financed for usually 30 years, every extra dollar you pay is one more dollar you will not pay interest on for 30 years!
To visualize what I am suggesting go to my mortgage calculatorand run two scenarios, one that represents your current mortgage situation and the other representing your new loan with a lower rate. For a rate quote run your scenario through my rate finder engine or email me and I will reply promptly. Once you have ran your two scenarios print them out and review them side by side and you will understand exactly what I am talking about. This will take only a minute and since time equals money I assure you this will not be a waste of your “Time”.
Ready to reduce the interest you pay? Apply onlineto be pre-approved for a Rate Reduction Refinance Loan.
Find out if now is the right time for you to refinance your current mortgage to lower your monthly payments, pay of your mortgage faster, take cash out, or combine your first and second mortgage.
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