Most people know how to shorten their mortgage by a few months, but many do not know how to pay off their mortgage in just 10 years. Though it will take hard work and perseverance, paying off your mortgage in ten years can be a great way to set yourself up for financial success. Simply use these steps and work hard to pay off your home twenty years faster than the typical home owner.
- Use an online calculator to determine how much extra you need to pay each month to pay off your mortgage in ten years. Simply enter your current principle balance on your home, your interest rate, the number of months you have already paid on your mortgage and that you would like to pay off your mortgage in ten years. The calculator should then tell you how much extra you need to pay every month to reach your goal.
- Create a budget to see if there are places you can cut back to free up money to pay off your home loan. Now that you know how much money you need to pay toward your mortgage every month you are likely going to need to cut back on expenses to find that money. Take a look at your current budget to see if there are expenses you can decrease or eliminate altogether. Things like car insurance, cell phone bill, eating out and other extras are great places to start. Keep cutting down your expenses until you have enough money to pay off your mortgage in ten years.
- Find ways to make extra money if you cannot free up enough money in your budget to pay off your mortgage in ten years. The fact is that most people will not be able to find enough money in their current budget to reach their ten year pay off goal. If this is the case, start working extra hours, freelancing, donating plasma or even babysitting to make the extra money. Remember that every extra dollar you make brings you that much closer to your financial aspiration.
- Continue to pay extra every month toward your principle balance until your mortgage is completely paid off. Though it may be difficult, continue to live on a budget and work extra until you have completely paid off your mortgage. You will never pay off your mortgage in ten years if you quit in a year or two. So keep reminding yourself why you are working so hard, and you will have your mortgage paid off within ten years.