1. Big Payments = Big Savings
Let's say you decide to refinance in order to take advantage of fantastic low rates. Smart move! However, you may be tempted to make lower monthly payments. Remember, the smaller your payment, the longer the amortization, which means more interest paid overall. Bottom line, make your payments as high as you can comfortably afford. This way you pay off your mortgage as soon as possible and avoid paying years of unnecessary interest.
If you happen to run into some extra cash, perhaps a tax refund or a gift, put it toward a lump-sum mortgage payment.
3. Prepay Is The Way
With Xceed's prepayment options, you can pay up to 100% of the original principal with no penalty! You'll pay far less interest over the life of the loan and be mortgage-free sooner.
4. Short Amortization Period
The longer your amortization period, the more you pay in interest. Choosing the shortest amortization period you can manage will save you big bucks on interest over the life of the mortgage.
5. The More You Pay, The More You Save
By making payments more frequently, you're putting money toward your mortgage principal, which means you'll pay less interest and save some serious cash.
6. A Little Extra Goes A Long Way
At Xceed, you can increase your payments up to 100% of the purchase price without penalty! By making larger payments you'll reduce your mortgage principal quicker, which means you'll pay less interest.