Hopefully, the patriotism and love of freedom that filled our minds just a few months ago is still strong, because I’m about to show you a few more ways to retain your freedom (from your mortgage company).
1. Make two payments every month (half of your payment twice). At the end of the year you will have made 13 full payments, versus 12 if you were paying once a month. The extra payment can be applied directly to your principal, and trust me, these payments add up.
2. Make sure your credit score is high. It had to be pretty great in order for you to get approved for that home loan-don’t let it drop just because you got what you want though. If you keep your credit score up, you’ll have a great opportunity to refinance and/or lower your interest rates down the road, which could save you a good amount of money.
3. Round up with your payments. It doesn’t take a lot of math, or effort, and it could really pay off in the end. But instead of rounding to the nearest 10, why not round up a little more. I propose that if your mortgage payment is $1,900, you should round that up to $2,000. Its pretty easy to make a bigger payment like that if you can just commit to a couple less Starbucks trips a week, or even cutting down on your cable package. You’ll be pleasantly surprised at the difference rounding up can make.
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