MARYVILLE, Tenn., Oct. 19, 2016 /PRNewswire/ -- Vanderbilt Mortgage and Finance, Inc., a Berkshire Hathaway company, understands that buying a home is a big decision, and with it comes paying a monthly mortgage payment. To that end, Vanderbilt Mortgage wants to offer homeowners tips that can help them pay their mortgages off early.
- Pay extra towards the principal balance. The most basic and widely-used practice is for a homeowner to simply pay more than their original monthly payment amount. These additional payment amounts can be applied to the principal balance, which will decrease the overall balance owed. This allows a payee to easily increase the speed in which they pay their total loan balance off. It is important that the homeowner specify that any additional funds put toward a payment are to go directly to principal and not interest. Many lenders provide an option for this in monthly account statements or during online payment process.
- Make one extra payment each year. Another option for homeowners is to increase the number of annual payments from 12 to 13 payments. This can be done either by paying additional principal on each monthly mortgage payment or making a full additional payment if or when extra funds are available to do so, such as during annual tax season. This can also easily be done by adding an additional 1/12th of a month's principal and interest to each monthly payment, beginning with the first monthly payment on the loan.
- Use an online mortgage calculator. Utilize an online mortgage calculator such as Vanderbilt Mortgage's early payoff calculator to determine the additional amount of money needed to pay toward the current mortgage in order to meet a specified timeframe for the desired earlier payoff date. The calculator also illustrates how much interest will be saved if the estimated amount is paid each month, from the time of calculation until the mortgage is paid off.
"Every month, families can take additional steps toward paying off their mortgages," said Eric Hamilton, president of Vanderbilt Mortgage and Finance, Inc. "We like to educate our customers where we can, like helping them make smart choices to get their home loan paid off early."
About Vanderbilt Mortgage and Finance, Inc.
Vanderbilt Mortgage and Finance, Inc. is a national housing lender that specializes in financing manufactured homes. In business for more than 40 years, the company currently services more than 180,000 home loans and works hard to tailor loans to each family's needs. Vanderbilt has an A+ grade from the Better Business Bureau and is a Berkshire Hathaway company. For more information, visit VMFHomeLoan.com.
Vanderbilt Mortgage and Finance, Inc., 500 Alcoa Trail, Maryville, TN 37804, 865-380-3000, NMLS #1561, (http://www.nmlsconsumeraccess.org/), AZ Lic. #BK-0902616, Loans made or arranged pursuant to a California Finance Lenders Law license, GA Residential Mortgage (Lic. #6911), Illinois Residential Mortgage Licensee, Licensed by the NH Banking Department, MT Lic. #1561, Licensed by PA Dept. of Banking.
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SOURCE Vanderbilt Mortgage and Finance, Inc.