Tips to Pay Off a Home Loan Quicker
Would you like to pay off your mortgage early?
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How would you like to pay off your mortgage faster? Doesn’t freeing yourself from the monthly payments sound like a dream come true? Of course it does. Today I’ll share a few quick tips to help you reduce the life of your loan.
Right now, most pay their mortgage once a month. But what if, instead, you made a payment every two weeks? If your monthly payment is $2,000, that amounts to $24,000 a year. Now, if you pay it off every two weeks, you’ll end up paying $26,000 a year. The extra payments will go toward your principal.
Another option you have is putting more money towards the principal every month. Just add a little extra money each month, whatever you can spare, be it $100, $200, $300, or $400.
You could also try refinancing into a smaller-term loan. For example, by switching from a 30-year loan to a 15-year loan, you’ll be able to pay off the loan faster and pay less in interest. Who wants to pay interest if they don’t have to? That will also help you get more money when you go to sell the home—a great opportunity for sellers.
If you have any questions about what I’ve discussed today, don’t hesitate to reach out. We’re here to help!