How To Pay Off Your Mortgage Early
Learning how to pay off your mortgage early not only saves you money, but gives you a sense of empowerment. Ridding yourself of your largest debt takes a plan and some patience. Here is how to get it done.
- Determine why you want to pay off your mortgage early. Are you looking to retire soon or do you want to eliminate debt? The answer reveals your motivation, which keeps you focused when you want to spend the extra money.
- Find an Amortization calculator using your favorite search engine. The Amortization calculator lets you plug in your data to see when your mortgage payoff occurs. It forecasts the actual day of your mortgage payoff based on the data you’ve entered.
- Set aside extra money for additional mortgage payments. Paying down your mortgage requires a slight change in lifestyle. Determine how much extra money you can apply towards your mortgage. Be honest with yourself. If you want to pay down your mortgage in five years, you probably need a second job which will significantly alter your lifestyle. Making just one extra payment a year shaves off twelve years from your mortgage. So every little bit helps.
- Draft a reasonable budget in order to pay off your mortgage early. Eliminating unnecessary purchases really offers a nice amount at the end of the month. Skipping the $5 lattes lets you make an extra mortgage payment a year with the money. Every little bit makes a difference.
Paying off your mortgage early leaves you feeling larger than life. Take small and steady steps and your mortgage will be history.