I read recently about reducing your mortgage payment by paying bimonthly. I've called around and so far haven't found any company that allows this. Do you know of any in Hawaii that do? There is a way to save
with mortgage paymentsWe checked with the Mortgage Bankers Association of Hawaii, and president Dennis Oshiro said, as far as his group knows, there is no institution in the state that offers that option.
However, Oshiro, vice president of loan origination for GE Capital, said there is another way for you to reduce your mortgage payments - both in time and amount - by just paying a little extra a month.
"Most mortgage companies today don't have any prepayment penalty," he noted. Speaking personally, he said that when he did loans, he asked clients if they could afford to pay a little extra every month. Just paying an additional $100 a month on a $200,000 loan, for example, could bring down a 30-year mortgage to 23 years, he said.
A variation on this is to pay an extra month's payment at the end of the year. But Oshiro said most people would have difficulty in coming up with an extra month's payment in a lump sum.
He advised talking with your mortgage officer about paying a little bit more every month.
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