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How to Buy a House With a Friend — The Right Way

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Not everyone can afford to buy a home on their own, especially if they’re managing student loan debt or don’t have a high salary. Fortunately, if you and a friend share the common goal of owning a home, there may be a path forward.

For good friends or cohabiting couples, buying a home together can help both parties boost their net worth or simply achieve homeownership.

However, purchasing a home together isn’t as simple as signing some paperwork and splitting the bills. The key to a successful co-homeownership arrangement is to set yourselves up for success from the get-go.

The content below is your guide to buying a house with a friend — the right way.

Is it a good idea to buy a house with a friend?

Before you get too excited about buying a home with your BFF, take the time to determine whether the decision makes sense for the both of you.

If either of you can’t afford or qualify to buy a house on your own, then it might make sense to buy with a friend, said Michael Becker, a branch manager with Sierra Pacific Mortgage in Lutherville, Md.

However, this decision shouldn’t be made lightly. Buying a house with somebody means entering into a legal contract — a lot like getting married. You need to make sure you have similar philosophies on finances, similar life goals, and the desire to both stay in the home for at least a few years.

You’ll also want to discuss living arrangements, routines and schedules — just like you would a prospective roommate. In fact, you might consider living together in a rental property before deciding to buy a home together.

Getting started buying a home with a friend

First, you need to be clear on where you both stand financially. Do you each have a proven track record of paying your bills on time? Are you keeping balances low on your credit cards? Do you have steady employment and income?

You’re entitled to pull your credit report from each of the three credit reporting bureaus — Equifax, Experian and TransUnion — once every year at no cost to you. You’ll also need to have an idea of where your credit scores stand, preferably by taking advantage of a service that offers a free credit score.

Before you start house shopping, you’ll want to know how much house you and your friend can afford based on your combined creditworthiness and income. That’s where a mortgage preapproval comes in.

A preapproval is a letter from a mortgage lender that says you’re conditionally eligible to borrow money to purchase a home. You’re given an estimated loan amount and interest rate. Having this information not only helps you better understand what types of homes might fit in your price range, but also helps home sellers take you more seriously as prospective buyers.

Creating a co-ownership agreement

You’ll want to settle on a co-ownership agreement before you start the homebuying process. Make it plain and get in writing how you’ll split equity in the home, who will be responsible for maintenance costs and what will happen if there’s a major life event such as death, marriage or having children.

“It’s important to talk about it and what your plans are if the relationship breaks down,” Becker said. “If somebody dies, what do you want to do with the house?”

A real estate attorney can help you set up an official co-ownership agreement.

Questions every co-ownership agreement should answer

The co-ownership agreement you draft and sign will need to address the issues surrounding your joint homeownership. Here are the main questions the agreement should answer:

Q What happens if one of you wants out?

Your agreement should outline an exit plan in case one or both of you want out of the property. This can get extremely complicated. For example, what if one of the co-owners wants to be bought out by the other co-owners?

Let’s say you’ve got three people on a mortgage and on the title to a property. If the other two can come up with the money for the equity, you’ve solved that problem.

If you wanted to sell your interest in the property, however, the co-borrower would need to refinance the mortgage to remove your name from the paperwork. If they don’t refinance the loan and start missing mortgage payments, you’ll still be on the hook and your credit profile will be affected, even if you’ve moved on from that home.

Keep in mind that whomever refinances needs to qualify again for the mortgage. If you decided to buy a home together because you couldn’t originally qualify for or afford a mortgage on your own, you still might not qualify to own after a refinance, unless your financial circumstances have improved dramatically.

If you can’t refinance, you all may decide to arrange for the departing owner to rent out their living space in the household — then you’d need to take time to find a tenant.

Q What happens if one of you suffers a job loss?

You’ll want to be prepared to fulfill your financial obligations if someone loses their income. That’s why it’s recommended to create a shared emergency fund, which you can draw from if one of you runs into financial issues (or, of course, to handle any maintenance needs). You can establish the contributions and rules surrounding a shared emergency fund in your co-ownership agreement.

A good rule of thumb is to stash away three-to-six months’ worth of living expenses. If you each save that much individually, you can pool up to a year’s worth of expenses for a rainy day.

Q How will you split the bills?

The co-ownership agreement also needs to address how you all will split up housing costs. Should you put some of the bills in one person’s name and some in the other’s name? What about opening a joint account and contributing a set amount to it for monthly bill payments?

Don’t forget about maintenance, repairs and escrow payments. You’ll want to be prepared for increases in your property taxes and homeowners insurance, should they come.

Applying jointly for a mortgage

Once you’ve decided that you and your friend will apply for a mortgage together, there are several things to keep in mind about the mortgage application process.

Although you’ll be co-borrowers on the same loan, you’ll each fill out your own mortgage application, Becker said. All of your information will be listed separately, including information about your income and existing debts. Once your applications go through underwriting, your and your friend’s information will be merged.

Based on this information, your lender will make adjustments to the mortgage rate you’re quoted. The more money you and your friend can contribute as a down payment, the better your mortgage rate tends to be. Similarly, higher credit scores will put you in a better position to get a competitive rate.

Whose credit scores do lenders use?

A lender will consider both of your credit scores during the underwriting process, which means a person with a lower credit score could drag down your collective credit score, leading to a lower mortgage rate.

When you apply for a mortgage individually, your credit scores are pulled from the three credit reporting bureaus and the lender uses the middle credit score — the second highest score — to help determine your estimated mortgage rate. In the case of a joint mortgage application, the lender will pull all three scores for each applicant, take the two middle scores and use the lowest of the two.

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Choosing the right homeownership structure

When you buy a home, you’ll get a title, which proves the property is yours. The paper the title is printed on is called a deed, and it explains how you, the co-owners, have agreed to share the title. The way the title is structured is important because it details what happens when one of the co-owners needs to part with the property.

The two most common ways to approach joint homeownership are tenants in common and joint tenants with rights of survivorship.

Tenants in common

Tenants in common (TIC), also referred to as tenancy in common, is the title structure most unrelated people use when buying a home. TIC outlines who owns what percentage of the property and allows each owner to control what happens if they pass away. For example, a co-owner can pass their share onto any beneficiaries in a will and their wishes will be honored.

The TIC allows co-owners to own unequal shares of the property (60/40, 75/25, etc.), which can come in handy if one owner will occupy a significant majority or minority of the shared home. For example, if two friends decide to buy a multifamily home, but one friend pays more because one friend’s space has much more square footage than the other friend’s space, they can split their shares of the home accordingly.

Pros of a TIC structure

  • Ownership can be unevenly split. You can own as much or as little as you want of the property as long as the combined ownership adds up to 100%. So, if you’re putting up 60% of the down payment, you can work it out with the other co-owner(s) to own 60% of the property on the title.
  • You don’t have to live there. You can own part of the property without living there. This is relevant for someone who simply wants to be a partial owner, but doesn’t want to live at the property.
  • You get to decide what happens to your share after you pass away. The TIC allows you the flexibility to decide what happens to your interest in the property in the event you pass away. You can decide if it will go to the other co-owners or to an heir. Regardless, the decision is yours.

Cons of a TIC structure

  • You could pay more housing costs compared to your friend if you have a larger ownership share. Because a TIC doesn’t require a 50/50 split, if you use more of the home’s square footage than your friend, you could shoulder a larger portion of the monthly mortgage payment and other bills.
  • Co-owners can sell their interest without telling you. Co-owners in a TIC can sell their interest in the property at any time, without the permission of others in the agreement. However, if they are also on the mortgage loan, they are still on the hook to make payments.

Joint tenants with rights of survivorship

In a joint tenants with rights of survivorship (JTWROS) structure, you and your friend would have equal shares in the property — a 50/50 split. This title structure differs from the TIC in that in the case of one co-owner’s death, the deceased party’s shares will be automatically absorbed by the living co-owner. For this reason, this type of structure is more common among family members or unmarried couples looking to purchase a home together.

If you were buying a home with a family member instead of your friend and would like your relative to automatically absorb your share of the property in the event of your untimely death, you’d go with this option. Even if you have it written in your will to pass your interest to another beneficiary, that likely wouldn’t be honored.

A joint tenants agreement requires these four components:

  1. Unity of interest: Co-owners must all have equal ownership interest.
  2. Unity of time: Co-owners must all acquire the property at the same time.
  3. Unity of title: Co-owners must all have the same title on the home.
  4. Unity of possession: Co-owners must all have the same right to possess the entirety of the home.

Pros of a joint tenants structure

  • Everyone owns an equal share in the property. There’s no arguing over shares if you go with a joint tenants’ arrangement, since it requires all co-owners to have an equal interest. So each co-owner has the same right to use, take loans out against or sell the property.
  • No decisions to make if someone dies. There’s nothing for co-owners or family members to fight over after you pass away. Your ownership shares are automatically inherited by the other co-owners when you pass away, regardless of what might be written in a will.

Cons of a joint tenants structure

  • Equal ownership. Equal ownership can be a con as much as it’s a pro. If you’re going to occupy more than 50% of the space, or put up more of the mortgage or down payment, you may want to own more than your equal share of the property. If that’s a concern, a TIC agreement is best.
  • No outside beneficiaries. In the event of your death, your co-owning friend would receive your share of ownership in the home, which means you can’t grant your ownership share to an heir in your will.

Pros and cons of buying a house with a friend

Still not sure if you and your friend should buy a home together? Consider the following pros and cons before making your decision.

Pros of joint homeownershipCons of joint homeownership
  • Gives you the chance to enter the housing market sooner than if you’d waited until you could buy on your own.
  • Lenders consider the lowest middle credit score between you and your co-borrower, which might impact how good of a mortgage rate you’ll get.
  • Potentially increases your buying power, as two separate incomes are being considered for the mortgage.
  • You’re both on the hook for the mortgage payments every month — a half payment won’t satisfy your lender.
  • Provides you with a choice in how you’ll structure homeownership.
  • If one of you wants out, the other has to refinance. If they can’t qualify for a mortgage alone, this could create problems for you both.

The bottom line

It sounds like a fun idea to own a home with a friend, but there are several considerations to work through before you get entangled in a contract that will impact you both financially and personally.

The biggest mistake you can make is letting feelings take over, Becker said. This applies to pre- and post-homeownership decisions.

“It should be very calm, cool, planned out, thought out,” he said. “Sometimes when those relationships end, people let their emotions get the best of them.”
Know (and get it in writing) where you each stand on taking title, paying bills, filing taxes and establishing a way out — should life change for either of you.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Crissinda Ponder
Crissinda Ponder |

Crissinda Ponder is a writer at MagnifyMoney. You can email Crissinda here

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Mortgage

Should You Save for Retirement or Pay Down Your Mortgage?

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

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On the list of financial priorities, which comes first — paying off your mortgage or saving for retirement? The answer isn’t simple. On one hand, owning a home with no mortgage attached to it provides long term security knowing you’ll have a place to live with no monthly payment except property taxes and insurance. However, you’ll also need income to live on if you plan to retire, and how much you save now will have a big impact on your quality of retirement life.

We’ll discuss the pros and cons of whether you should save for retirement or pay down your mortgage, or maybe a combination of both.

Pros of paying down your mortgage vs. saving for retirement

The faster you pay your mortgage off, the sooner you own the home outright. However, there are other benefits you’ll realize if you take extra measures to pay your loan balance off faster.

You could save thousands in long-term interest charges

Most homeowners take out a 30-year mortgage to keep their monthly payments as low as possible. The price for that affordable payment is a big bill for interest charged over the 360 payments you’ll make if you’re in your “forever” home.

For example, a 30-year fixed $200,000 loan at 4.375% comes with a lifetime interest charge of $159,485.39. That’s if you never pay a penny more than your fixed mortgage payment for that 30-year period. Using additional funds to pay down your mortgage faster can significantly reduce this.

Even one extra payment a year results in $27,216.79 in interest savings on the loan we mentioned above. An added bonus is that you’ll be able to throw your mortgage-free party four years and five months sooner.

You’ll build equity much faster

Thanks to a beautiful thing called amortization, lenders make sure the majority of your monthly mortgage payment goes toward interest rather than principal in the beginning of your loan term. Because of that, it’s difficult to make a real dent in your loan principal for many years. You can, however, counteract this by making additional payments on your mortgage and telling the lender to specifically put those payments toward your principal balance instead of interest.

Not only do you pay less interest over the long haul with this strategy, but you build the amount of equity you have in your home much faster. And to homeowners, equity is gold — you’re closer to owning your home outright, and equity can also be a resource if you need funds for a home improvement project or another big expense.

You can access that equity as your financial needs change by doing a cash-out refinance or by taking out a home equity loan or home equity line of credit (HEL or HELOC).

You won’t lose your home if values drop

When you contribute extra money into a retirement account, there is always the risk that you’ll lose some or all of the money you invested. When you contribute money to paying off your mortgage, even if the values drop, you still have the security of a place to live, and are increasing the equity in the home, no matter how much it’s ultimately worth.

Making extra payments ensures you’ll eventually have a debt-free asset that provides shelter to you and your family, regardless of what happens to the housing market in your neighborhood.

Cons of paying down your mortgage vs. saving for retirement

There are some cases where paying down your mortgage faster might actually hurt you financially. Before adding extra principal to your mortgage payments, you’ll want to make sure you aren’t doing damage to your financial outlook with an extra contribution toward your mortgage payoff.

You might end up paying more in taxes

The higher interest payments you make during the early years of your mortgage can act as a tax benefit, so paying the balance down faster could actually result in you owning more in federal taxes. If you are in a higher tax bracket in the early (first 10 years) of your mortgage repayment schedule, it may make sense to focus extra funds on retirement savings, and let your mortgage interest deduction work for you. Of course, everyone’s tax situation is different, so you’ll have to decide (with help from an accountant ideally) if it makes sense to itemize your taxes in order to claim mortgage interest payments as a deduction.

You won’t get to enjoy the return on your paydown dollars until you sell

The only real benchmark for figuring out the value of paying down your mortgage is to look at how much equity you’re gaining over time. However, the equity doesn’t become a tangible profit until you actually sell your home. And the costs of a sale can take a big bite out of your equity because sellers usually pay the real estate agent fees.

Home equity is harder to access

The only way to access the equity you’ve built up is to borrow against it, or sell your home. Borrowing against equity often requires proof of income, assets and credit to confirm you meet the approval requirements for each equity loan option. If you fall on hard financial times due to a job loss, or are unable to pay your bills and your credit scores drop substantially, you may not be able to access your equity.

Pros of saving for retirement vs. paying down your mortgage

Depending on your financial situation and savings habits, it may be better to add extra funds monthly to your retirement account than to pay down your mortgage. Here are a few reasons why.

You may earn a higher return on dollars invested in retirement funds

The growth rate for a stock portfolio has consistently returned more than housing price returns. The average return in the benchmark S&P stock fund is 6.595% for funds invested from the beginning of 1900 to present, while home values have increased just 0.1% per year after accounting for inflation during that same time period.

Assuming your portfolio at least earns 7%, if you consistently invest your money into a balanced investment portfolio, you can expect to double your money every 10 years. There aren’t many housing markets that can promise that kind of growth.

Retirement funds are generally easier to access than home equity

Retirement funds often give you a variety of options for each access, with no income or credit verification requirements, and only sufficient proof of enough funds in your account to pay it back over time. For example, a 401k loan through the company you work for will just require you to have enough vested to support the loan request, and sufficient funds left over to pay it off over a reasonable time.

Just be cautious about making a 401k withdrawal, which is treated totally differently than a loan. You aren’t expected to pay it back like you would a 401k loan, but you could get hit with taxes and penalties.

Cons of saving for retirement vs. paying down your mortgage

You’ll need to weather the ups and downs of the market

Most people who have invested money in the stock market or tracked the performance of their 401k over decades have stories about periods when the value of those investments dropped substantially. While the 7% return on investment is a reliable long term indicator how much your retirement fund might earn, the path to that return is hardly linear.

For example, if you were considering retirement between 1999 and 2002, you may have had to delay those plans when the S & P plummeted over 23% in value in 2002. If you look at each 10-year period since the 1930s, every decade has been characterized by periods of ups and downs.

Calculating the benefit of paying down your mortgage vs. saving for retirement

If you’re torn as to what to do with that extra cash or windfall, let’s look at an example of someone who has an extra $200 to put into either their nest egg or their mortgage each month for the next 30 years.

For this scenario, we’re going to assume their retirement account earns an average 7% rate of return and that their mortgage loan balance is $200,000.

Here’s how much they’d save:

Savings From Paying $200 per Month Down on Your Mortgage
Years PaidMortgage Interest SavingsExtra Equity in HomeTotal Interest Savings and Equity Built Up
10 years$6,040$30,039$36,079
20 years$28,529$76,529$105,058
22 years 6 months$50,745$200,000$250,745

One thing you may notice about the mortgage savings chart — it includes how much extra equity you’re building. Often only the mortgage interest savings is cited when people look at how much you save with extra payments, but that ignores the fact that you’re building equity in your home much faster as well. So not only do you save over $50,000 in interest with your extra contribution, you replenish $150,000 of equity that was used up by your mortgage balance.

As you can see, adding that extra $200 to their mortgage principal each month saved them about $200,000 in the long haul — but the real savings don’t stop there.

By adding an extra $200 to their mortgage payment each month, this borrower turned their 30-year loan into a 22-and-a-half year loan and became mortgage debt-free seven years faster.

That means, in addition to saving $50,000 in interest savings and gaining $200,000 of equity, they also no longer have a mortgage payment. That frees up $998.57 per month that they can now use as discretionary income. That’s an extra $89,871 they could potentially save over that 7.5 year period.

When you add that to the $250,745.41 they saved on mortgage interest and earned in home equity, they’re looking at a total savings of $340,616.

That gives the mortgage paydown a $54,000 net positive edge over saving that extra $200 for retirement, as you can see in the table below.

Savings From Contributing $200 per Month to a Retirement Fund
Years PaidRetirement Balance
10 years$34,404
20 years$102,081
30 years$235,212

The one caveat for this retirement calculation is we assumed the saver was starting at a $0 investment balance. If they already had a healthy balance in their nest egg, they might actually come out in better shape than paying down their mortgage.

There are clearly benefits to each option, and you should consider running your own calculations with your real numbers to get the best answer for yourself.

Paying down your mortgage and saving for retirement at the same time

There’s a fair case to be made for both paying down your mortgage and saving more for retirement, but why choose? If you’re somewhat on track with your retirement savings goals, and like the idea of having your mortgage paid off quicker, you could allocate a certain amount to each.

Pick a number you feel comfortable paying to your principal every month, and then to your 401k, and put it on autopilot for a year. Any time your income increases, or you get bonuses, divide up the amount between principal pay down and retirement additions.

Let’s look at what happens if you evenly divide up your $200 per month between investing your retirement and paying down your mortgage. We’ll use the same $200,000 loan at 4.375% referenced above, and look at the lifetime results.

Savings From Paying $100 Down on Your Mortgage Until Paid Off
Years PaidInterest SavingsExtra Home EquityTotal Interest Savings and Equity Built Up
10 years$3,020$15,020$18,040
20 years$14,265$38,265$52,350
25 years$30,534$200,000$230,534
Savings From Contributing $100 to a Retirement Fund for 30 Years
Years PaidRetirement Balance
10 years$17,202
20 years$51,401
30 years$117,607

Balancing the $100 investment in both strategies still yields a six-figure retirement balance after 30 decades, a debt-free house after 26 years, and shaves off $30,000 in mortgage interest expense. If you don’t like putting all your eggs into one financial basket, this may balance the risks and rewards of each option.

Final thoughts

Looking at the short term and the long term may provide you with the best framework for making a good decision about how to spend dollars on retirement versus extra mortgage payments. Be wary of any financial professional that tells you one path is absolutely better than another.

Having a stable source of affordable shelter is equally as important as having enough income to live when you retire, so a balanced approach to paying down your mortgage and savings for retirement may help you accomplish both goals.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Denny Ceizyk
Denny Ceizyk |

Denny Ceizyk is a writer at MagnifyMoney. You can email Denny here

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Life Events, Mortgage

What Is Mortgage Amortization?

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

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One of the biggest advantages of homeownership versus renting is each mortgage payment gradually pays off your mortgage and builds equity in your home. The difference between your home’s value and the balance of your loan is home equity, and your equity grows with each payment because of mortgage amortization.

Understanding mortgage amortization can help you set financial goals to pay off your home faster or evaluate whether you should refinance.

What is mortgage amortization?

Mortgage amortization is the process of paying off your loan balance in equal installments over a set period. The interest you pay is based on the balance of your loan (your principal). When you begin your payment schedule, you pay much more interest than principal.

As time goes on, you eventually pay more principal than interest — until your loan is paid off.

How mortgage amortization works

Understanding mortgage amortization starts with how monthly mortgage payments are applied each month to the principal and interest owed on your mortgage. There are two calculations that occur every month.

The first involves how much interest you’ll need to pay. This is based on the amount you borrowed when you took out your loan. It is adjusted each month as your balance drops from the payments you make.

The second calculation is how much principal you are paying. It is based on the interest rate you locked in and agreed to repay over a set period (the most popular being 30 years).

If you’re a math whiz, here’s how the formula looks before you start inputting numbers.

Fortunately, mortgage calculators do all the heavy mathematical lifting for you. The graphic below shows the difference between the first year and 15th year of principal and interest payments on a 30-year fixed loan of $200,000 at a rate of 4.375%.

For the first year, the amount of interest that is paid is more than double the principal, slowly dropping as the principal balance drops. However, by the 15th year, principal payments outpace interest, and you start building equity at a much more rapid pace.

How understanding mortgage amortization can help financially

An important aspect of mortgage amortization is that you can change the total amount of interest you pay — or how fast you pay down the balance — by making extra payments over the life of the loan or refinancing to a lower rate or term. You aren’t obligated to follow the 30-year schedule laid out in your amortization schedule.

Here are some financial objectives, using LendingTree mortgage calculators, that you can accomplish with mortgage amortization. (Note that MagnifyMoney is owned by LendingTree.)

Lower rate can save thousands in interest

If mortgage rates have dropped since you purchased your home, you might consider refinancing. Some financial advisors may recommend refinancing only if you can save 1% on your rate. However, this may not be good advice if you plan on staying in your home for a long time. The example below shows the monthly savings from 5% to 4.5% on a $200,000, 30-year fixed loan, assuming you closed on your current loan in January 2019.

Assuming you took out the mortgage in January 2019 at 5%, refinancing to a rate of 4.5% only saves $69 a month. However, over 30 years, the total savings is $68,364 in interest. If you’re living in your forever home, that half-percent savings adds up significantly.

Extra payment can help build equity, pay off loan faster

The amount of interest you pay every month on a loan is a direct result of your loan balance. If you reduce your loan balance with even one extra lump-sum payment in a given month, you’ll reduce the long-term interest. The graphic below shows how much you’d save by paying an extra $50 a month on a $200,000 30-year fixed loan with an interest rate of 4.375%.

Amortization schedule tells when PMI will drop off

If you weren’t able to make a 20% down payment when you purchased your home, you may be paying mortgage insurance. Mortgage insurance protects a lender against losses if you default, and private mortgage insurance (PMI) is the most common type.

PMI automatically drops off once your total loan divided by your property’s value (also known as your loan-to-value ratio, or LTV) reaches 78%. You can multiply the price you paid for your home by 0.78 to determine where your loan balance would need to be for PMI to be canceled.

Find the balance on your amortization schedule and you’ll know when your monthly payment will drop as a result of the PMI cancellation.

Pinpoint when adjustable-rate-mortgage payment will rise

Adjustable-rate mortgages (ARMs) are a great tool to save money for a set period as long as you have a strategy to refinance or sell the home before the initial fixed period ends. However, sometimes life happens and you end up staying in a home longer than expected.

Knowing when and how much your payments could potentially increase, as well as how much extra interest you’ll be paying if the rate does increase, can help you weigh whether you really want to take a risk on an ARM loan.

The bottom line

Mortgage amortization may be a topic that you don’t talk about much before you get a mortgage, but it’s certainly worth exploring more once you become a homeowner.

The benefits of understanding how extra payments or a lower rate can save you money — both in the short term and over the life of your loan — will help you take advantage of opportunities to pay off your loan faster, save on interest charges and build equity in your home.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Denny Ceizyk
Denny Ceizyk |

Denny Ceizyk is a writer at MagnifyMoney. You can email Denny here

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