If you have a mortgage you probably want to know how you can pay it off as quick as possible. Most of us will make mortgage payments for the majority of our lives but if you are one of those who wants to be mortgage free while owning your home, check out our tips below.
Refinance your 30-year loan to a 15-year loan
A lot of times your payment will be a little bit more, but you will pay off your mortgage so much faster! You could also save thousands of dollars in interest. The first step to refinancing to a 15-year loan is taking a good hard look at your budget. Then, sit down with a loan officer and talk about the options. Refinancing to a 15-year mortgage loan could be the fastest way to pay off your mortgage early.
Don’t refinance but make your payment like you did
Making significantly larger payment every month will help pay down the principal balance of your loan faster and again save you a ton in interest. This is just like refinancing to a 15-year loan without going through the process. This way, you have a little flexibility in your monthly budget just in case but you are also paying down that loan much earlier.
Use cash windfalls to make lump sum payments towards your mortgage
Winning the lottery, even if it’s a smaller amount, getting that big bonus, or inheriting some cash from a long lost relative all bring in propitious funds that you can put towards the balance on your mortgage.
Pay more at the beginning of your loan
The first few years of mortgage payments are mostly interest. So the more you can throw at the loan up front, the more money and time you can save on your mortgage loan. Even adding $100 extra a month can cut down the amount of time you have to pay on your mortgage.
With every raise, increase the amount you put towards your mortgage payment
With each increase in your salary you can put more funds towards paying off your debt load. Even small bumps in your monthly payment can have a large impact on the amount of time it takes to pay off your mortgage. You will also save yourself some interest too.
So there you have it. Five worthwhile tips to help you get rid of that mortgage payment much faster. It seems like every financial guru out there has a tip or two on how to make this happen, but here are some of our favorites for you to check out.
- Dave Ramsey: 7 Easy Ways to Pay Off Your Mortgage Early
- Bankrate: 4 Ways to Pay Off Your Mortgage Early
- The Pros and Cons of Paying Off Your Mortgage Early
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