Tips on How to Pay Off Your Mortgage Early
Does the thought of making mortgage payments for 30 years sound discouraging to you? Thirty years is a long time. Thirty years represents 360 monthly mortgage payments. If 30 years seems like a very long period of time to pay monthly mortgage payments, you have the right to pay off your mortgage early.
If you want to pay off your mortgage loan early but don’t have a large lump sum of money to do so, following are some ideas on how to reach your goal of a paying off your mortgage before three decades expire:
Pay half of your regular mortgage payment every two weeks instead of the full amount once per month. Believe it or not, paying half of your regular mortgage payment every two weeks instead of making a full payment one time per month can actually reduce the number of years you must pay your mortgage by more than six! With bi-weekly mortgage payments, you are actually making 26 half payments per year instead of the 12 full payments that you’d normally make at the end of every month. The extra two partial payments that result from this payment schedule can make a huge difference! Please note that not all mortgages offer this option.
Send more money than you owe each month to your mortgage company, and allocate the extra dollars to go toward your principal. If you have an extra $50, $100, $150 or more per month, add it to your regular monthly mortgage payment. Over time, the extra dollars put toward your principal will lower your loan amount significantly, and will therefore reduce the number of years until your mortgage is paid in full.
Consider refinancing your mortgage into a loan with a lower interest rate. If you have a mortgage with an interest rate that is significantly higher than today’s low rates, refinancing your mortgage could potentially save you hundreds of dollars per month in interest. Once your loan is refinanced, simply allocate the amount you are saving to your principal each month. And before you know it, your principal will be lowered significantly – which will lead to your mortgage being paid in full sooner.
If you receive extra money unexpectedly, send it to your mortgage company and allocate it toward the principal on your loan. If you receive a bonus at work, if someone gives you a few hundred dollars for your birthday, if you sell something and have extra cash, or even if you find $50 on the street – send it to your mortgage company! If you do this every so often, your mortgage principal will be reduced – ultimately leading to your loan being paid off early.
Paying off a 30 year mortgage in fewer than 30 years might seem impossible – especially when your loan is relatively new. But many people have embarked on ambitious goals of paying off 30 year mortgages in 15 or fewer years – and they have been successful. Paying a 30 year mortgage off early can be done! For additional advice and tips on how to pay off your mortgage early, call The Home Loan Arranger today at (877) 938-7501.
