If you need assistance, please call 302-575-1086

How to Pay Off Your Delaware or Pennsylvania Mortgage Early

Thursday, July 15, 2021   /   by April Griffith

How to Pay Off Your Delaware or Pennsylvania Mortgage Early

kitchen.jpegBecoming a homeowner in Delaware and Pennsylvania is exciting, but the thought of paying on your mortgage for the next 30 years may be anything but that. Not to mention, there are many other expenses associated with your home purchase— the inspection, the down payment, the closing costs.

Delaware and Pennsylvania homeowners can easily feel overwhelmed, but as your local real estate experts, the Kat Geralis Home Team is happy to provide a few ways to keep those expenses down and pay off your mortgage early!

Make an extra payment
One of the simplest ways to start paying down your mortgage is to make one extra payment each month. Most lenders today do not have pre-payment penalties and just by making one full additional payment during the year could take about four years off of your loan.

Add onto your payment
If you cannot swing making a complete extra payment during the year, you can begin to add extra to your mortgage payment each month. Even adding as little as $100 onto your payment, applied to your principal, over the life of the loan, you could take five years off and pay tens of thousands less in interest!

Refinance into a shorter term
Refinancing your mortgage from a standard 30-year loan to a 15 or even 10-year term could save you thousands in interest, especially if you locked in a rate when they were much higher. Just keep in mind that these shorter term loans—although packaged with a lower interest rate—do typically require Delaware and Pennsylvania homeowners to have at least 20 percent in equity in order to avoid private mortgage insurance.

It's also important to note that you will need to pay one-time closing costs again to refinance, and your payment each month will likely be much higher than you're used to as you're spreading out your loan amount over a smaller amount of time. If you don't plan to stay in your home long-term, a refinance may not always be the best option for you, so it's key to talk to your DE or PA lender.

Feel free to contact me with any questions you have about buying a home in Delaware or Pennsylvania this year or for a list of available homes in the area.

Katina Geralis
DE and PA Real Estate Expert
eXp Realty

Homes for Sale
Visit My Website
Contact Me
Find me on Facebook

  delaware real estate, delaware area homes, delaware real estate market, delaware homeowners, pennsylvania real estate, home seller tips

eXp Realty - Kat Geralis Home Team
Kat Geralis
3411 Silverside Road Suite 104
Wilmington, DE 19810
302-575-1086

The data relating to real estate for sale on this website appears in part through the BRIGHT Internet Data Exchange program, a voluntary cooperative exchange of property listing data between licensed real estate brokerage firms in which eXp Realty - Kat Geralis Home Team participates, and is provided by BRIGHT through a licensing agreement. The information provided by this website is for the personal, non-commercial use of consumers and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Some properties which appear for sale on this website may no longer be available because they are under contract, have Closed or are no longer being offered for sale. © 2021 BRIGHT, All Rights Reserved Information Deemed Reliable But Not Guaranteed. Data last updated: July 24, 2021 7 PM.
This site powered by CINC: www.cincpro.com