Chrissy’s Top 3 Mortgage Hacks for 2023

Mortgage payments are a pain in everyone’s budget. 

If you’re like most people, your monthly payments and interest rate may have you feeling a little uneasy about your finances, but with a little effort and an emphasis on long-term financial health, you can save thousands over the life of the loan.

So sit back, relax, and let Chrissy the #Denton realtor show you how to save beaucoup bucks on your home loan.

1. Extra Payments

Even though the thought of making extra payments on a mortgage that’s already substantial can sound about as fun as chewing foil, there are ways you can do it that are both manageable and effective.

On average (as of November 2023), the interest rate for a 30-year mortgage is at 7.332% in Texas, and home prices are around $257,628. Even with a 20% down payment, you’re still looking at total interest payments well above $300,000 over 30 years.

That’s why everyone should consider different ways of paying down the balance. Here are just a few.

Bi-weekly Payments

Most people set up monthly payments for their mortgage, but think about paying half of your monthly balance every two weeks.

This will only cost you a bit extra per month, and it’ll get the balance paid out significantly faster. Each year, you’ll end up making a total of 13 payments instead of 12.

Based on the numbers from before, that “average” homeowner would be looking at monthly payments of $1,700. However, instead of paying $1,700 at the end of every month, they could split it into two bi-weekly payments of $850 to pay off the balance a bit quicker.

Bi-weekly payments over the lifespan of a 30-year loan will reduce it by years and can save you tens of thousands in interest.

One Extra Payment Per Year

Another way to approach this is to simply make a single extra payment each year at a time during the year when you’re flush with cash.

This could be done using things like tax refunds, credit card rewards, bonuses, or just an annual dip into your savings accounts. 

If your credit card rewards are on a points system, you can just do a quick calculation to see what the cash value is, then transfer that amount to a savings account that gets emptied every year into a lump-sum payment on the mortgage.

By doing this you’re using free money to make even more money on saved interest.

One Extra Per Quarter

Making one extra payment per quarter isn’t for everyone, but if you’ve got the budget for it, this could fast-track you out of debt and have the full balance paid down a decade or more ahead of time.

And the amount you save would be huge.

2. Refinancing

There are a number of different routes you can choose if you think refinancing might be in your best interest. It’s a good idea to look into refinancing every 2-3 years to see if there’s an option that can save you significant money.

However, you’ll need to be wary of the servicing fees, which could offset a portion of the savings.

Refinance to a Shorter Term

Refinancing to a shorter term will give you higher monthly payments, but the savings over the lifespan of the loan can easily reach hundreds of thousands of dollars.

This may be preferable to making additional payments since this will involve a lower interest rate; however, you shouldn’t create a shorter loan term unless you’re 100% certain you can fit this within your budget.

Missing payments will significantly hurt your credit and put you at risk of losing your home.

Refinance for a Lower Interest Rate

This likely won’t be an option for at least another year due to the Fed’s rate hikes on loans, but if inflation cools and interest rates drop to more reasonable levels, it will definitely make sense to at least put some feelers out on this refinancing option.

Again, due to closing costs and service fees, it doesn’t necessarily mean that lower rates will save you money. But if you still have a high balance on your mortgage, then even marginally lower rates of 1–1.5% can save you a hefty sum.

3. Keep the Same Budget

When most people get pay raises or new and better jobs, their first thoughts are about what they can do with the extra money.

New cars, a few extra vacations, or more nights out with the spouse might be on the list, but if you have a mortgage that’s giving you problems, it might be best to keep your lifestyle the same, no matter what.

Having a set budget that only moves up or down with inflation and putting all extra money toward your mortgage can help you pay it off much, much faster than just sticking to your pre-determined monthly payments. 

It’s hard to say just how much this can save you since everyone’s income situation is unique, but being careful with your expenses, even when bigger paydays come, will pay even bigger dividends.

Get to Know Chrissy the #DentonRealtor

Chrissy Mallouf has lived in Denton community for 30+ years and has become an integral part of Denton’s fabric. Chrissy obtained her real estate license in 2008 after spending over 16 years in the banking industry in roles ranging from consumer, commercial banking, and director of sales.

She is consistently recognized as the #1 buyer’s agent at Keller Williams Realty Denton, has won the Denton Record Chronicles’ Best of Denton for the past 10 years and has been awarded Best of Denton County since for the past 5 years. Chrissy is extremely passionate about mentoring and helping other achieve things they did not think were possible.

Chrissy has been voted one of Denton’s most influential people. She graduated from the Texas Association of Realtors Leadership Program and serves with the Greater Denton/Wise County Association of Realtors Board of Directors. 

She is married to John Mallouf and has two beautiful children, Madison and Holden. Chrissy loves to spend time traveling with her family and making memories, supporting her kiddos in their various activities, volunteering, and cheering on her favorite football teams.

When she’s not being a super mom or a top-producing realtor, you will find Chrissy giving back to the community by serving on several non-profit boards. She serves on the Denton Parks Foundation Board, is involved in Denton ISD, is a member of Denton Benefit League supports major community events like Denton Holiday Lighting, Kiwanis Fireworks Show and Arts & Jazz.

She is a member of the Denton Chamber of Commerce and serves on the Keller Williams Agent Leadership Council.

She is your #DentonRealtor!