Besides mounting college and credit card debt, an unpaid mortgage is the main financial burden that many Americans have to face. However, it’s entirely possible to pay it off much faster if you use the right strategies and ideas. Photo by Binyamin Mellish from Pexels
Pretty soon, you can own your house outright and enjoy more peace of mind.
Sounds good? Now let’s take a look at some of the best tips you can implement immediately to shave years off your mortgage.
Decide on biweekly payments
This is the best and the least financially challenging tactic that’ll help you to get rid of your debt. Instead of paying in monthly installments, you choose to pay every two weeks, which, over twelve months, will be equivalent to thirteen monthly payments.
If you have a regular 30-year loan, this simple strategy can help you reduce your repayment time by around six years. Just make sure that your loan provider doesn’t charge you extra fees for more frequent payments.
Read more articles and books about real estate and finance
Reading insightful finance and real estate-related content is one of the habits practiced by wealthy people, and it can potentially save you tens of thousands of dollars over the years. One of the best books you should get your hands on if you want to cut the time in which you pay off your house is Mortgage Free by Heidi Farrelly. It goes into much depth about the topic and will teach you how to develop a bulletproof strategy for dealing with your mortgage.
Use any bonuses and cash windfalls for extra payments
You can pay off your mortgage much faster if you use your tax refund, a company bonus, or side hustle cash to make just one additional payment each year. This requires some financial discipline, of course, but if you stay on course, you may reduce your payment span by as much as seven years. Perhaps you will need to tighten your belt for a while and adhere to a strict budget, but in the end, it’s going to be worth it.
Pay a little bit more every single month
If you can slightly increase your positive monthly cash flow, you can go for smaller extra payments each month. For example, if your mortgage amounts to $1,000 per month, add just $100 extra per month from your savings. This will translate into a much shorter overall repayment period. Before implementing this technique, make sure you contact your lender and confirm that they’ll be able to process payments that go over your regular monthly bill.
These are just a few ideas you can use to pay off your mortgage much faster and enjoy financial security as a result. Now it’s your turn. The sooner you take action, the sooner you’ll be debt-free.
More Home Buying Advice