What is the most effective strategy to reduce Average Daily Balance on a 2nd mortgage loan of $25000?
The first solution that comes to mind is a refinance loan. Depending on your credit rating, you may be able to refinance both your first and second mortgages into a new loan with better terms than both of the previous mortgages. By submitting your contact information to the Bills.com Savings Center, we can have several lenders contact you to discuss the refinance options available to you. I encourage you to submit your information if you are interested in a refinance loan.
If you cannot refinance your current loans, you may still be able to reduce the cost of your loan with careful payment planning. You can reduce your effective interest rate under the “Average Daily Balance” method of computing finance charges by making more than one single payment each month, such as two or three payments a month. If you reduce your loan balance each month twice rather than once, the average daily balance will be less, rendering a lower finance charge.
I hope this information helps you Find. Learn. Save.