To Prepay or Not to Prepay (Your Mortgage, That Is) If you’ve got extra money burning a hole in your wallet (lucky you), prepaying your mortgage can save you tens of thousands of dollars in interest over the life of the loan. Try: • Rounding up your payment every month • Making one extra payment per year (hello, bonus check) • Throwing all your spare change in the direction of principal But beware: some mortgages have prepayment penalties. Read your loan docs like your financial future depends on it—because it kinda does. What No t t o Do Before Closing We get it. You’re excited. But don’t go wild with your credit card at IKEA just yet.
Big no-nos before closing:
• Opening new credit accounts • Buying a car (or even just applying for one) • Changing jobs • Making large unexplained deposits
• Moving money around like a squirrel hoarding acorns Your lender will notice. And they will call you.... and it could keep you from buying that dream home! 10 Things to Know Before You Close (A.K.A. Th e (A.K.A. The Finish Line Checklist) 1. Open an Escrow Account (done by the Title Company) It’s like a financial referee—holding the money until everyone plays fair. 2. Lock in Your Interest Rate
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