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8 Secrets To Paying Off Your Mortgage Faster

8 Secrets To Paying Off Your Mortgage Faster

Couple looking at their mortgage payments

Couple looking at their mortgage payments

Wouldn’t it be nice to know that you don’t have to pay your mortgage anymore?! You could save all that money and put it towards your retirement or that vacation you’ve been dreaming of. It’s easy to let money stress you out and get you down. However, if you invest some time and effort, you can reduce both the stressors and interest on your mortgage payments. If you’re ready to buckle down and pay off your mortgage faster, these tips that will help you do just that.

  1. Add an extra sum to each payment

Every little bit counts. Even if you put an extra $20 each month towards your mortgage payment, it can make a huge impact. Take the time to calculate your expenses and see where you can make a small budget cut. Maybe it’s cancelling a subscription you don’t really use or bringing lunch to work with you instead of going out. Even saving $5 a day will accumulate to about $100 over the course of the month. Putting that total towards your mortgage payments instead can save you thousands of dollars!

  1. Accelerate your payments

Change your mortgage payment options to weekly or bi-weekly payments instead of monthly. You will save more on interest charges and in the long run, you’ll notice a difference!

  1. Put those bonuses to good use

If you receive an annual raise, a bonus at work, government credit, a tax refund, lottery winnings, or an inheritance, put it towards your mortgage. Be smart about where you put these extra bonuses instead of blowing that money on other things.

  1. Pay a lump sum towards the outstanding balance of your mortgage

This can be done before the end of your mortgage term or at certain dates in your mortgage contract. It’s important to keep in mind that not all mortgages are the same. Before you make a lump sum payment, double-check your contract to see when you can make these payments and how much you are allowed to pay. Your lender may have a prepayment penalty in place if you pay at the wrong time or pay too much.

  1. Refinance at a lower interest rate

Keep an eye on the interest rates because you may be able to reduce your monthly payments by refinancing or renewing at a lower rate. By doing so, more of your payments will be going towards the principal of your mortgage loan, rather than the interest, which means you’ll be able to pay your mortgage down more quickly. Plus, let’s face it, paying less of your hard-earned money on interest is always a good thing.

  1. Pay extra at the start

Throughout your mortgage term, a lot of the money goes directly to the interest. If you can pay down a larger amount on the principal with your down payment, then you reduce the amount of interest you pay over the lifespan of your mortgage.

  1. Round up your payments

If your monthly mortgage payment is $1,078 a month, round it up to $1,100. That’s only an extra $22 a month that can go towards paying off your mortgage more quickly.

  1. Consult a mortgage pro!

This is probably the most important step you will take but if you really want further advice on how to pay off your mortgage faster. Consulting a mortgage expert like myself, Darren Robinson, will help you make a solid plan to save on interest and avoid pre-payment penalties! I understand how easy it is to get lost when trying to establish a plan for mortgage payments but, with my help, I can take the stress away while simplifying the work involved. As a financial advisor that’s only a phone call away, I can save you money, time and effort and you can trust that I work with your best interests at heart. Don’t let the mortgage blues get you down any longer, contact me today at 705-315-0516, or book an appointment online, and let’s take a look at the finer details together.

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