Is your mortgage giving you a case of the winter blues? You’re not alone. Many of us dream of having our monthly mortgage payments just disappear overnight. Now, overnight may be far too ambitious, but what if I told you that there are ways you can pay off your mortgage faster. Well, there are!
These simple concepts will help you shake off those winter blues while starting to pay off your mortgage faster.
Pay more than your minimum payment on your mortgage
Let’s say your monthly mortgage payment is $2100, but you’re able to comfortably afford to contribute an extra $100. By contributing a little bit extra each month you will not only reduce the amount of interest you pay on your mortgage, but it will save you YEARS of mortgage payments altogether. Don’t break the bank doing this and be sure that whatever extra you add, that you can do so comfortably. The more you do this, the closer you will be to debt-freedom!
Use bonuses or extra cash to pay off your mortgage
Did you get a bonus or raise at work recently or receive an inheritance or an unexpected amount of extra cash? Use it to pay off some of your mortgage! By making lump-sum payments every year, you can again, shave years off of your mortgage payments. When you make a lump-sum payment, however, be sure to review your mortgage contract to know what your limit is and when you can make these payments. If you put more money than what your contract allows, there could be penalties involved, working against achieving your overall end goal in the long run.
Make more frequent payments
If you’re currently making monthly payments, you could choose a more accelerated payment option that will allow you to make payments biweekly or even weekly. Typically when you choose a more accelerated payment option, you save money on interest charges and contribute more to your mortgage yearly. Your payment frequency may not seem like a big deal at first, but in the long run, you’ll notice that it’s a small change that can have a big impact.
Want to learn more about how to pay off your mortgage faster or which option above is best for you? I can help. With my experience as a professional mortgage broker and financial advisor, I can show you what your options are and which ones would benefit you the most to help achieve your long term financial goals. If you’re ready to reach that debt-free finish line faster, work with me, Darren Robinson, today! Give me a call at 705-315-0516 to set up a virtual meeting and let’s get you one step closer to debt-freedom.