Mortgage loan does not have to take 30 years to pay off. You have the control over how much money you can send into your mortgage lender. Paying off your mortgage early will shave years off your home loan and save tens of thousands of dollars in interest charges.
There are some strategies you can use so that you will be able to pay off your mortgage faster without going through a refinance. Below are some useful tips to help you become mortgage-free sooner.
Round up your mortgage payments
Remember that every dollar counts when it comes to paying off your mortgage. The faster that you can pay your loan, the more you will save in interest. A better way to pay off the loan is to round up your mortgage payments. You can accelerate bi-weekly mortgage payments; if paying $565 monthly, and then consider rounding up to $600 instead. The extra $35 will make a difference in your monthly budget.
Finds ways to earn extra money
You can sell old clothes, books, and other things you don’t use anymore so that you will earn extra cash that will help you in paying the mortgage. You can also do freelance work like online writing jobs, web design, transcription or anything that you might be interested with. Those small amounts of money will definitely help you to pay loan earlier.
Getting a payday loan
If you are in search of cash and need it quickly, you might be considering a payday loan. This is one fast – simple way to secure hundreds of dollars with very little requirements. Payday loans will help you with cash the same day for financial emergencies. Normally, this loan has no restrictions, which means you can use the money for anything you wish.
Make your payment bi-weekly
Ask your mortgage lender if they are offering bi-weekly payment programs. There are 52 weeks in a year and you can make 26 half-payments using this method, which equals one extra payment per year. This method is really helpful if one or more people in the household are paying bi-weekly, bringing home extra money in the months when you make a half-extra mortgage payment.
Let your salary be a payment for mortgage
This method is known as salary crediting and often used alongside a mortgage professional package. Salary crediting means spending all your income paid into your loan. After that, you will use credit card for your monthly expenses. Each month, you may pay your entire credit card within the interest free period.
Use lump sums
A lump sum can be a tax return, bonus from work, inheritance or dividend payments and they can be used to anything you wish for such as paying your mortgage. The money from lump sum will be a great help to pay off the loan you have and you won’t drag too many years to pay it.
Cut expenses and save more
Change your lifestyle since you have loan to pay. You can choose a cheaper mobile plan, avoid buying expensive coffee or shopping endlessly and allocate your extra money to make mortgage payments. Ensure that you have a frugal lifestyle because it will definitely free you from loans and debt.