You’ve probably made a few new resolutions for 2016. Have you also resolved to reduce the cost of your mortgage and keep more of your hard-earned dollars in your own pocket? Here’s the often-repeated simple formula to minimize your interest cost and pay off your mortgage sooner:
1. Make your payments as frequently as possible.
2. Make sure your more-frequent-payment-plan is an accelerated or rapid pay-down option, which helps decrease the interest you pay.
3. Make a larger payment if possible, i.e., review your budget and, if possible, increase the amount you normally pay.
4. Make lump sum payments to reduce the principal whenever you can.
Remember that the above strategy works only if you do not carry credit card or other high interest debt. If you do, please call me at 416-674-2318 – I’ll be glad to review your finances and suggest a suitable debt management strategy.