How To Pay Off Mortgage
Is it easy to figure out how to pay off your Mortgage? In a word, yes. Paying off your mortgage not only empowers you but leaves you with a sense of security, not to mention extra cash. With the right motivation and proper planning, anyone can pay off their mortgage. Here are some simple steps to ensure your success.
- Determine your reason. Paying off your mortgage is a commitment. You need to remember why you want to do this. This is the single most important step and will help you stay focused when you want to spend your extra money.
- Use an amortization calculator. An Amortization calculator is a tool used to determine when you will pay off your mortgage. Most financial institutions have these calculators available, but there are some available online as well. Just use your favorite search engine and enter amortization calculator in the search field. Next, place the dollar amount either in the month or yearly field for extra contributions. Look at the payoff date listed and determine if this is feasible for you. This gives you the road map to help you pay off your mortgage.
- Set a concrete goal. Once you determine how much you can afford to put towards paying off your mortgage, it is time set a budget. This can mean carving out a few hundred dollars a month, by eliminating daily lunches at work. Maybe you will need a second other job altogether. Just set a goal and stick to it.
- Be realistic. While setting a goal to pay off your mortgage is great, you need to be realistic about your expectations. If you make an additional mortgage payment at the end of the year, it will cut down a 30 year mortgage almost in half so even small amounts of money make a difference. Try setting an amount that allows small changes in your lifestyle so that you won’t be tempted to get off track. Remember this is a marathon and not a sprint.
Paying off your mortgage allows a sense of empowerment like no other. The feeling is priceless and with the right determination you can experience it too.