How to pay off your Mortgage early!!

Who would want to become best buddies with a mortgage, right? Here are some clever tactics to eliminate that mortgage before it even realizes what's happening

Ways to Pay Off Your Mortgage Faster:

• Make use of Extra Payments: Because who doesn't love paying off debts with a little extra sprinkle of cash? It's like giving your bills a high-five on their way out!

  • Biweekly Payments: Instead of making monthly payments, make half of your monthly payment every two weeks. This results in 26 half-payments or 13 full payments per year, one extra payment annually.

  • Lump Sum Payments: Whenever possible, make lump-sum payments. Apply bonuses, tax refunds, or any windfall to your principal balance.

• Round Up Your Payments: Rounding your payments up to the nearest $50 or $100 can shave off years from your mortgage term without significantly affecting your monthly budget.

• Refinance to a Shorter Term: Refinancing to a 15- or 20-year mortgage from a 30-year loan typically increases monthly payments but drastically reduces the amount of interest you pay over the life of the loan.

• Make Payments Toward Principal: Specify that any extra payments go directly toward the principal rather than future interest. This reduces the overall balance on which interest is calculated.

• Apply Raises or Side Income: Use raises, bonuses, or side income to increase your monthly payments or to make additional lump sum payments.

• Cut Unnecessary Expenses: Allocate savings from cutting discretionary expenses (like dining out or subscriptions) to your mortgage payments. Even small amounts can make a big difference over time.

• Refinance to a Lower Interest Rate: If interest rates drop, refinancing to a lower rate will reduce your monthly payments, freeing up more funds to allocate toward the principal.

• Stay Debt-Free: Keep other debts like credit card or auto loans under control, so you can focus on paying off your mortgage faster.

• Utilize a Mortgage Recasting Option: If your lender allows mortgage recasting, you can pay a lump sum toward your mortgage, and your lender will recalculate your monthly payments based on the new lower principal.

• Check for Prepayment Penalties: Before making extra payments or paying off your mortgage early, confirm that your loan does not have a prepayment penalty. Some mortgages charge a fee for early payoff.

Small Steps Lead to Big Savings

If you're looking to end your mortgage relationship, you don't necessarily have to seek professional help. Take charge by making biweekly payments, rounding up amounts, and refinancing to refresh your mortgage. Soon enough, you'll be on track towards financial independence and full homeownership. With these mortgage tricks up your sleeve, you are well on your way to kicking your mortgage to the curb.

So, what are you waiting for? Start today and watch those years (and interest payments) disappear!

Feel free to adapt these strategies based on what works best for your financial situation. Every little bit helps when it comes to paying off that mortgage early and securing your financial future!