Your mortgage can be one of the largest and longest-running debts you pay. Your monthly payments reduce your cash flow and may impact other lending you may apply for. Paying down your mortgage will not only lower your debt, but it will also reduce the amount of money you spend on interest.
Lump Sum Payments
Paying a lump sum payment on your mortgage will shorten the time it takes to pay off your loan. Whether you put extra money down monthly, quarterly or yearly, the long-term savings will be substantial.
Accelerated Payment Plans
Monthly payments are not the only option for your mortgage, consider opting for an accelerated payment plan. An accelerated payment breaks your monthly bill into smaller amounts that are withdrawn weekly or biweekly. Accelerated plans with more frequent installments reduce the interest you’d pay over time. That is the equivalent of making one extra payment each year.
Same Payment on Lower Interest Loans
If your mortgage renewal has a lower interest rate, request to keep your monthly payments the same as they were with your previous rate. By maintaining a consistent payment plan on a lower interest loan, you will be paying more of your mortgage without impacting your budget. That will reduce the total interest you pay and the length of your mortgage.
Increase Mortgage Payments
When refinancing your mortgage, ask to increase your payments rather than accept the monthly rate set by the lender. Even a small increase of $100.00 more per month will lower the total interest you pay and take years off the life of your mortgage.
To find out how you can pay off your mortgage faster, contact me today.