For most people, their home mortgage is the largest debt they will ever have in their lives. So, what if you could wipe this big monetary obligation completely off your list of monthly payments? Would that change your financial life?
Many people would answer with a resounding “Yes!”
The good news is that there are several ways to do this, and they don’t require you to make a tremendous cash outlay all at once. For instance, one way to pay off your home mortgage more quickly is to make additional principal payments each month.
By doing so, you can shorten the length of your loan’s term. It will also allow you to build up home equity more quickly. Therefore, if you opt to sell your home in the near future, this could put much more cash in your pocket.
While many homeowners think that the additional mortgage payments must be large in order to make a difference, this is not necessarily the case. For instance, if you just pay an additional $100 per month towards the principal, you could knock off approximately six years. So, rather than having to make a total of 360 payments on a 30-year loan, you would only have to make 279.
Another strategy for paying off your mortgage sooner is to simply pay half of your monthly payment amount every two weeks. This will result in making 26 “half” payments – which equates to a total of 13 months rather than 12. Depending on your current interest rate, this payment method could wipe away eight years on a 30-year mortgage – nearly one-third of your total payment period.
If you’re in the market for a new home – or even if you love your current residence but want to explore mortgage refinancing options, contact us to get pre-qualified. We’ll help you to determine which type of home mortgage is right for you, as well as the amount you qualify for, based on your budget and objectives.
