Unlock The Full Value of Your Mortgage

Unlocking the full value of your mortgage is important so you can maximize the dollars you are eligible to borrow when buying property. There are a handful of different strategies people exercise when they take out mortgages.

Make Extra Payments

Making extra payments on your mortgage loan is a good way to reduce the amount you are paying on interest over an extended period of time. Paying more than the minimum each month reduces the principal faster, saving on interest which in turn saves you money throughout the life of your loan.

Refinance Your Mortgage

Another good strategy is to refinance your mortgage loan. If interest rates drop or your credit improves, refinancing can be a good option. Refinancing will help lower your interest rate and reduce your monthly payments or shortening the loan term.

Home Improvements

Home improvements and renovations have always been popular ways to increase the value of your home. Making home improvements to your home can enable you to sell your house for a higher price in the future and also give you the ability to appraise your property for a higher value than you originally purchased.

Rent Out Space

If feasible, renting out a portion of your home or property can generate additional income to pay down the mortgage faster. Renting out space in your property helps you offset expenses and gives you the ability to pay off your mortgage in a shorter window of time than expected.

Biweekly Payments

Although it might seem li

1. Biweekly Payments: Paying half your monthly mortgage every two weeks results in an extra payment each year, reducing the loan term.
2. Invest: Rather than putting all extra funds into mortgage payments, consider investing in assets that yield higher returns.
3. Negotiate Lower Fees: Shop around for lower insurance rates, property taxes, and other fees associated with homeownership.

By combining these strategies, you can maximize the value of your mortgage and achieve financial goals sooner.