No More Mortgage! How to Eliminate Your Mortgage Fast!

Owning a home has long been part of the American Dream. For many, that dream means sacrificing for up to 30 years to ensure the mortgage payment is made on time each and every month. Many financial experts highly recommend paying off a mortgage loan before planning to retire to keep monthly living costs as low as possible.

Here are 5 tips for alleviating mortgage debts earlier…

  • No More Mortgage! How to Eliminate Your Mortgage Fast! 1 of 6
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    Click through to see them all!

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  • Set Up Automatic Payments 2 of 6

    If your lender allows it, you can set up your mortgage payments to coincide with your payroll dates. Many lenders will let you pay weekly or bi-weekly based on when you get your check. The good part of this method is there are some weeks where you are paid three times in a month which would mean extra payments are going towards your loan. 

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  • Send a Little Extra 3 of 6

    When you make your monthly loan payment, write the check out for more than what is required. For example, if your loan note is $735 make a point to send $800 instead. This may seem like a small amount of money but it can make a big difference over the life of your loan. Depending on how much you can afford to pay on a consistent basis, you may shave years off of the end of your loan term by putting more money towards the principle of your mortgage each month.

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  • Allocate a Windfall 4 of 6

    When you come into a lump sum of money, it can be highly beneficial to allocate that cash towards your mortgage. An inheritance, a lottery winning, or a work bonus can be allocated towards the principle of your mortgage. Contact your lender prior to sending a large sum to ensure it is credited properly.

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  • Always Pay On Time 5 of 6

    Even if you send in extra payments throughout the year, if you are letting mortgage payments go late or miss some completely you are potentially setting yourself up for major financial and credit problems. You'll end up paying more in fees on the mortgage you have and could ruin your credit. 

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  • Consider Refinancing Benefits 6 of 6

    If you initially took out a mortgage loan for 30 years, you may want to consider a refinance to a shorter term. If you are in a good financial place with excellent credit, refinancing your current 30 year mortgage to a 15 year mortgage term may be a great way to reduce the length of your mortgage.

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Article Posted 3 years Ago

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