10 Nov FOUR EASY WAYS TO PAY OFF YOUR MORTGAGE
If you could pay off your mortgage early what would you do with all that extra cash each month? Here are four tips that can help you be mortgage free!
1. Get a shorter-term mortgage
If you have a 30 year mortgage then refinancing it as a 15-year loan, you’ll pay a lot less interest because of the shorter term and because interest rates for 15-year loans are lower. Keep in mind that the payments for a 15-year mortgage are not double the payments of a 30-yr loan; they’re significantly less. Use our mortgage calculator to give yourself an idea of how much your payment might be.
2. Change to bi weekly payments
Instead of making one month payment, you could make a half payment twice a month. So if your normal mortgage payment is $1800 a month, you’ll instead pay $900 every other week. Because there are 52 weeks in a year, a biweekly charge agenda will allows you make 13 payments in a year compared to the standard 13. When you have a 30-yr mortgage and a $250,000 loan, a bi weekly payment can save you tens of thousands of dollars.
3. Pay whatever extra you can
If you can put anything extra toward your mortgage make sure to mark it as “principal only”, which means that the principal will get paid down in place of the payment going toward interest. Even if you can round your payment up from $933 to $1000 a month, the little extra will add up quicker than you’d think.
4. Use inheritance, tax refunds, etc. to pay down your loan
Most of use get a tax refund every year. In this case use it to pay down your loan every year. Also, whenever you get a raise at work apply the increase to your mortgage payment because you might not even miss the extra money because you are not used to having it.