Tips To Save Money For An Extra Mortgage Payment

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The Federal Savings Bank gives readers a few tips on how to save for an extra mortgage payment.

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money saved from refinancing could be the equivalent of or more than one extra mortgage payment.

The Federal Savings Bank, a Midwest based veteran owned lender, knows that making extra payments on a mortgage could drastically cut down on interest payments, saving homeowners money in the long run. Whether they're first-time home buyers who recently purchased a home or a seasoned homeowners, saving up for a greater number of mortgage payments doesn't have to be difficult. Homeowners could put down one extra mortgage payment each year by following these tips:

1. Set Up Automated Savings
While homeowners might not remember to always put more money toward their mortgages, they could sign up for automated savings to put funds aside every month. Consumers also have the option of deducting money allocated toward extra mortgage payments from their paychecks.

2. Use The Tax Refund
If homeowners are eligible for a tax refund, they could put that money in a savings account to later pay an additional mortgage payment. This could enable homeowners to grow savings quickly without changing budgets drastically.

3. Refinance Their Mortgages
Another consideration is refinancing a mortgage to save money. With interest rates near historical lows, homeowners could refinance to a lower rate than they originally locked in. The Federal Savings Bank highlights to prospective mortgage applicants the fact that money saved from refinancing could be the equivalent of or more than one extra mortgage payment.

Contact the Federal Savings Bank, a veteran owned bank, to learn more about mortgages.

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Giorgio Urbano Ferrero
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