One Way To Save Money: Pay Off Your Mortgage
Three ways to pay off your homeowner’s loan faster
I know what you’re thinking: that’s pretty unrealistic, but if you sit down and think about it, it’s not as unrealistic as you might think. All homeowners should be thinking of ways to pay off their home loan as soon as possible. Paying off your mortgage early not only reduces your housing cost, but it allows for money to be spent on other needs and desires. Here are three ways to get rid of your mortgage fast:
Get into the habit of adding a little extra money to each monthly payment. It can be as little or as much as you’d like as long as all other necessities are taken care of first. We wouldn’t want you falling into deep debt. However, check with the terms of your mortgage agreement beforehand to make sure there are no prepayment penalties.
Make biweekly payments
One way to make extra payments without feeling the brunt is to make payments every two weeks. Being that there are 52 weeks and 12 months in a year, if you pay half of your regular mortgage payment biweekly, you’ll have made 13 full monthly payments when the year’s out. The extra payment can decrease a 30-year mortgage by almost six years.
Decrease loan time
It’s simple, if you have the means to afford a higher payment, consider refinancing to a lesser loan term. This will decrease your interest rate as well.