How To Pay Off Mortgage Sooner
If you are a home owner, it is very likely that you would like to know how to pay off your mortgage sooner. The thought of owning a home free and clear is the dream of many homeowners that does not have to take 30 years to come true. Simply follow these steps and you could be paying off your home decades sooner than most.
- Refinance your home mortgage to get a shorter term loan. This is one of the best ways to pay off your mortgage sooner. Not only will you be forced to pay off your loan sooner than the typical 30 year mortgage, but you will typically have a lower interest rate as well which will save you money. So if you can, refinance into a fifteen or twenty year mortgage.
- Pay half of your monthly mortgage every two weeks instead of one monthly payment. In addition to refinancing your mortgage, you can shave years off the life of your loan by making biweekly mortgage payments. Simply send in half of your monthly mortgage payment twice a month.
- Make small payments toward the principle of your mortgage every month. See if you can find extra money to pay toward your principle balance. Only $50 a month could shorten your loan by several years. So look at your monthly budget to see how much extra you can pay on your mortgage.
- Put raises and tax refunds toward your mortgage. Windfalls are another great way to pay off your mortgage sooner. For example, if you were to put your $2,000 tax return toward your $100,000 mortgage financed at 6% interest for just five years in a row, you could shave over twelve years off of your 30 year mortgage. So remember, every little bit you pay will get you that much closer to being getting rid of your mortgage.
- Continue to pay extra until your mortgage is paid off early. Once you start doing these things to pay off your home early, do not stop. The more consistent you are about paying extra on your mortgage, the sooner your mortgage will be paid off. So keep it up and you will be enjoying a paid off home sooner than you ever thought possible.