Nearly every homeowner dreams of the day when they will no longer have to make mortgage payment--the good news is that day may be closer than you think. While there are no magic tricks to make your mortgage disappear, there is plenty that you can start doing right now to begin shaving extra months off of your mortgage. It takes planning, persistence, and determination, but paying off your mortgage early is an attainable goal. Our REALTORS® are here to help you get started with tips for paying off your home at the speed of light.
Follow Our Tips for Paying Off Your Home Early
- Switch to Biweekly Payments
If you're looking for a way to speed up your mortgage payments without making a big adjustment to your day-to-day budget, then switching from monthly to biweekly payments may be an excellent idea. With monthly payments, you ultimately make 12 full payments on your loan each year. Biweekly payments allow you to squeeze in one more full payment without requiring you to rework your budget. Over time, those extra payments really add up and will help you pay off your home early.
- Set a Target
Even if paying your mortgage in full is still a fairly distant dream, it really helps to have a target date for achieving your goal. Setting a target that fits with your financial outlook is a great way to stay motivated, keep the process on track, and keep your budget in order so that you can still enjoy the finer things in life while paying off your mortgage early. If you're having trouble setting a target date that makes sense for you, your financial adviser may be able to help.
- Pay Down the Principal
Making extra payments on the principal of your loan is a powerful tool for paying off your mortgage early. You may be surprised to know you don't have to make big principal payments to start noticing a difference. Most lenders will allow you to send extra cash with each payment dedicated to paying down the principal only which ultimately makes a big difference in your interest costs over time. An extra $50 or $100 each month toward the principal will add up much faster than you might think.
- Turn Extra Cash into Mortgage Payments
Did you get a raise at work, receive a bonus, inherit money, or sell something of value? Be sure to set some of that extra cash aside to help pay off your home early. Whether it's a quick lump sum or a bit of extra money over time, putting financial windfalls toward your mortgage can be one of the fastest ways to pay off your home early.
- Consider Refinancing
If you're not happy with the terms of your current mortgage, refinancing your mortgage with a shorter term may be an option. Refinancing is a big decision best made with the help of your financial adviser, but a shorter term may help you pay less in interest than you would with a 30-year mortgage. It may be a bit more demanding on your budget in the short-term, but the long-term payoff is significant.
When you're searching for the right home to call your own, our team of local REALTORS® is here to help. Contact Haring Realty to buy and sell homes in the Mansfield, OH area.