Owning a home is a huge responsibility, and it can take many years before your house is paid in full. While most people expect they'll be making mortgage payments for the rest of their lives, there are some things you can do to get the balance down and even pay it off much faster. Here are four helpful tips that can get you on the right track to paying off your mortgage more quickly.
Pay More Every Month
Just like a credit card, the more you pay each month, the lower your balance will be. Draft a budget of your current expenses and determine an amount you can comfortably pay in addition to your regular mortgage payment. Even if it's a small amount, this extra figure can whittle away at your principal much faster if you do it each and every month. Think of it as a self-imposed increased payment and soon it will just feel like it's part of your regular household bills.
Use Bonuses And Tax Returns
Any time you get extra money from the boss for a job well done or you're due a refund on your taxes, consider using that money to pay down your mortgage. Since this extra income is really just a bonus anyway, it won't hurt your take-home pay or affect your bills. By putting any extra money you receive towards house payments, you can see the principal balance go down each year. This can also apply to things like an inheritance, gambling winnings, or other extra windfall income you receive.
Make Extra Payments
Another trick to paying off your mortgage more quickly is to add one to four extra payments per year. You can make thirteen equal payments within a calendar year, or make one double payment every quarter. Both of these methods can help you see a payoff in a lot less time if you're financially able to do so. Make sure that your lender is aware that these extra payments should be going to the principal within that month or year so that the funds are being applied correctly.
There are some mortgage refinancing plans available through companies like Dominion Lending Centres HT Mortgage Group that can decrease your mortgage terms from a thirty-year plan to a fifteen-year one. This can literally cut the life of your mortgage in half; however, keep in mind that in most cases your monthly payment will increase. Shop around for the best interest rates so you can be sure that you're getting the biggest bang for your buck. With these easy tips, you can see your mortgage balance go down in a lot less time than you imagined.Share
13 April 2016
Hey everyone, my name is Francis Bricker. Welcome to my site about obtaining home loans. When I was finally ready to buy a house, I had no idea how to approach the home loan application process. I talked to several financial officers in an attempt to better understand the best way to approach loan acquisition. I learned how my income and credit history would influence the interest rate and chance of acceptance. I also discovered information about down payments and other costs associated with new home ownership. I would like to share this knowledge with you to help others secure their first home loan. I hope you will find my site helpful during this stressful, yet exciting, time.