3 Ways to Save $100K on Your Next Home

Dated: May 30 2018

Views: 1

Saving $100K on your next home sounds crazy, right? Savings like this can be life-changing and could allow you to do so much more with your future plans. Believe it or not, with knowledge and a few changes, this could be your reality.

A strategy that will save you thousands of dollars in interest charges is paying extra on your mortgage monthly.  This can eliminate multiple years off of your home loan.

Understand that paying down the principal quicker on your home does not decrease your minimum payment each month. However, it will shorten the life of the loan and save you more money than most can save on their own.

⬇︎ Here are three ways to save you thousands on your next home ⬇︎

1. Increase Your Monthly Payment by One-Twelfth

Some people do not know this, but the largest part of your early year payments go toward paying interest. If you pay a little extra on your principal now, this will make a significant amount of savings down the road.

The additional 1/12th of your monthly payment will decrease the balance on your current principal and likely avoid some of those interest charges.

2. Make One Extra Payment Per Year

If you get an annual bonus or a nice size tax return check, use it to pay one extra mortgage payment each year. You will cut the life of the loan significantly and save thousands in interest.

3. Pay Half of Your Monthly Payment Bi-Weekly

This takes a little more effort, but you could authorize an automatic transfer from your checking account to savings account bi-weekly. You will have made 26 half payments, which will become 13 full payments at the end of the year without even realizing it!

Look 👀 How Much You Can Save!

Calculate how much you can save on your own mortgage using this mortgage payoff calculator!

If you have any real estate questions or would like some guidance on getting pre-qualified and finding the right lender, please call or email us today!

Want More Real Estate Tips to Save? 

We've got plenty to share with you!

Blog author image

Michelle Porter

I have been a leader in Greensboro’s real estate market since 1994 and have consistently been a top producer in many segments of the Triad market. As a Greensboro native, I have extensive knowledge....

Latest Blog Posts

Weekend Guide: June 11 2021

Your Local Weekend GuideIf you're looking for fun, entertaining and educational things to do in the Greensboro, NC area, you've come to the right place. Our Weekend Guide is packed with a variety of

Read More

The Secret Costs of Selling Your Triad Home to an iBuyer

A slew of real estate websites promise instant cash offers for homes, but sellers may not come out on top.If you’ve been thinking about selling your home, you’ve probably come across a

Read More

Worried About Home Buyer’s Remorse? These 5 Tips Will Help Avoid Regret

Set and stick to concrete limits when it comes to budgetDon't bid on a home you don’t want just to beat out the competition. Consider your priorities and what matters most. Once you've set

Read More

Who You Work With Matters: Top 5 Concerns About Real Estate Agents

An industry that is millions of real estate agents strong comes with its own set of compliments and complaints! In fact, as of October 2020, there were 1,451,031 members of the National

Read More