Do you dream of the day you completely pay off your mortgage? Would you like to own your home outright but do not have the finances to pay it off all at once?
Almost forty percent of homeowners have paid their mortgage off early. This is an appealing option for many since it alleviates financial stress, helps you save money on interest payments, and allows you to put money towards other goals.
If you are ready to get rid of your mortgage debt, then look no further! Our guide will show you three tips for paying your mortgage off early. Read below to learn how you can be mortgage-free in no time!
1. Make Extra Mortgage Payments
One of the main tips for paying your mortgage off early is to make an extra mortgage payment. This can mean making an additional payment each month or making one extra payment a year. Any little bit helps and can have a huge impact in reducing the amount of your loan.
However, if you decide to pay more towards your loan, make sure to reach out to your lender first. They will inform you if you face any penalties for paying your mortgage off early. In addition, you can let them know that you want your extra payments applied to the principal, not the interest.
2. Use Unexpected Income
Have you received an unexpected windfall of money? Use this extra cash and put it towards your mortgage payment. Here are a few sources of unexpected income that you can use to pay off your house faster:
- Holiday bonuses
- Tax returns
- Credit card rewards
- Gifts from relatives
These additional forms of income are a great way to make a dent in your monthly mortgage payment so that you can pay it off early. And the added benefit is that since this money is not part of your monthly budget, it will not affect any of your current financial obligations.
3. Refinance Your Mortgage
An additional tip to help you pay your mortgage early is to check with your lending company to see if you can refinance your mortgage. This will reduce the amount of money you are paying towards interest as well as significantly decrease the length of your loan.
For example, if you currently have a traditional 30-year loan, you can request to refinance it down to a 15-year mortgage. By cutting the length of your mortgage in half, not only will you save a ton of money on interest, but you will be able to pay your mortgage off early.
Paying Your Mortgage off Early Is the Right Move!
Now is your chance to own your home outright! Our guide has discussed three surefire tips for paying your mortgage off early. By taking our advice, not only will you be mortgage free but you will have the extra cash needed to follow your dreams!
Did you find this article helpful? For more tips on how to achieve financial freedom, make sure to explore the rest of our blog.