Clever Tips for Paying Off Your Santa Cruz Home Mortgage Faster

Posted by Lauren Spencer on Friday, February 22nd, 2013 at 1:01am.

Paying off the mortgage on your Santa Cruz home faster not only means that you’ll be able to enjoy the peace of mind that comes with completely owning your property earlier, but you will also save thousands of dollars in interest payments. Below are seven clever tips to help you get your mortgage payments on the fast track.

1. Save for a large down payment
Pay as large a down payment as you can reasonably afford. The more you can put down, then the less you’ll have to borrow from the bank.

2. Read the fine print
When you are choosing a mortgage, look at the fine print to find out if any restrictions apply to paying early. Some lenders will charge you for making extra payments.

3. Prepay early in the life of the mortgage
This is when the loan is the most interest-heavy. In the first five to seven years you will be paying mostly interest. Request an amortization schedule of your mortgage to get a clear picture of how this works.

4. Be smart with unforeseen fortune
If you get an unexpected chunk of cash, such as a gift, prize, work bonus, inheritance, tax refund or other windfall, apply it straight to paying down the principal on your mortgage.

5. Double-check your records
When you make extra payments, ensure that they are processed correctly. Sometimes when the lender receives a payment that is outside of the monthly cycle, they may not know what to do with it. Make a special note and keep track of the payments yourself, so you can make sure they’ve been applied to your principal.

6. Increase your payment
Even increasing your payment by a small amount every month can take years off the length of your mortgage. Look at how much you can afford to pay every month rather than just the minimum payment amount.

7. Think about a bi-weekly payment
You might want to consider switching to an accelerated bi-weekly mortgage payment rather than a monthly payment. This allows for several extra payments each year.

These are just a few techniques you can use to pay off your mortgage faster. Remember, the quicker you pay off your mortgage, the less interest you will be paying.

Please call me at 831.662.6522 or email me at for more information about financing your Santa Cruz home.

For additional information, please visit my home page at

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About Lauren Spencer

Award-Winning Santa Cruz REALTOR®

Lauren Spencer is your local real estate expert, specializing in Santa Cruz real estate and surrounding communities—this is where she lives, works, and plays too. Let her know your questions about the community and county and she'll be happy to fill you in on all you want to know! Lauren Spencer has consistently been voted best local REALTOR in Santa Cruz and is always happy to offer her advice and expertise. Call her at: 800.226.4717.

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