One Way to Save Money on Your Mortgage

I know this sounds too simple, but you wouldn’t believe how frequently I remind people of the importance of paying their mortgage on time. If you only have enough money to pay one thing, let it be your mortgage. As detrimental as late payments of credit cards or car loans may be, nothing hurts worse than a mortgage late.

Additionally, make your payment by the first of the month. Yes, mortgages are due on the first of the month; Yes, lenders will have a grace period of anywhere from 5-15 days before they will access a late fee; And, Yes, technically, as long as you pay before you are 30 days late you won’t be listed as late. But you will have late payment fees. I had a client who called me needing to refinance. He told me he just needed an extra $150 per month. After talking, I discovered that in addition to his Monthly Payment he was paying $85 each month in late fees because he never paid until the last week of the month. I know it doesn’t seem like much, but $85 over 12 months is the equivalent of a monthly payment for many home owners.

And don’t forget that next time you look to purchase a home or refinance your loan; the payment history is a key factor in determining your interest rate. Zero late payments translate to lower interest rates, which typically mean a lower payment.

Well, that’s it for this week. Enjoy the weekend. Email me if there is a topic you want me to shed some light on. As always, you can get me at jayhart@cottonwoodmtg.com

After all: We Make It Easy . . . Every time!