While foreclosures and short sales are on the decline, many Americans are still finding themselves in a situation where they are having trouble paying down their mortgages. But, there are responsbile things home owners can do. Check out these 5 tips for paying down your mortgage.
1. Refinance: Interest rates are declining and you may find that you are able to secure a rate well below 4%. Obviously, with a lower rate you will be paying less money overall on your mortgage.
2. Pay in Advance: Be sure there is no penalty for over paying on your mortgage, and then start making extra payments (if you find you are able to do so). By making payments more often and earlier, you are cutting out the time that interest is acruing, therefore, saving money.
3. Don't Pay in Advance: Doing the opposite of #2 may help you as well. Look into what tax bracket you find yourself in. Then, see if it is to your benefit to stay in the lower level tax bracket.
4. Save Your Liquid Assets: You may want to convert them to cash and pay down your mortgage more quickly. But, in the long run, it is better to keep those assets intact. Life happens, and you will want the extra security in case of a financial emergency.
5. Combine Some of the Above: If you're able, don't just choose one method for paying off your mortgage. If it is truely a priority to you at this time, pick a few methods.
Lang Premier Properties is home to a leading Oakland County Short Sale Realtor. Specializing in all aspects of real estate including Bloomfield Twp, MI short sales, foreclosures and working with home buyers and sellers with Macomb County Luxury homes. When you hire Lang Premier Properties, whether you are purchasing or selling Metro Detroit Real Estate, you can rest assured that you are in good hands.