Mortgage Tips – How to Pay off Mortgage Fast
Every new home owner dreams of paying off their mortgage. Owing zero on your home can be a huge relief, but in most cases it will take 30 years to pay off a home loan. Therefore, I have some tips on how to pay off your mortgage a little faster than the normal.
Pay twice monthly – Making half your mortgage twice a month will give you 13 full monthly payments each year. You can save a lot of money over the period and pay your mortgage off early. However, you will have to get this approved by your mortgage company and in many cases they require you to pay a small amount up front to be put on this type of payment program.
Tax rebate – Now that it’s tax season, you can put your tax rebate toward the principle of your home loan. The more you are able to pay toward your principle, the faster you will bring down the amount you owe.
Shorter payment schedule – You can put yourself on a shorter payment schedule. There are several options to choose from like 10, 15, 20 or 30 year terms. To calculate what a 15 year mortgage payment would be, simply use a mortgage calculator and apply 15 years instead of 30 years. Use your current terms for everything else.
If you currently have a 30 mortgage loan your payment for a 15 year loan will be much higher, but you will pay much, much less in mortgage interest rates over the life of your loan.
Round up – When you round up your mortgage payment you can pay off your mortgage months to years early. So, say if your mortgage is $1422.00, you could round it up to $1450 or even $1500. If your budget allows, you can round up even higher.