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Tips On How To Pay Off Your Mortgage Faster

Tips On How To Pay Off Your Mortgage Faster

For most homeowners, a mortgage is a necessary part of the home buying process. For many, they would like to prioritize getting their mortgage paid off as soon as possible so that they can own their home free and clear. If you find yourself trying to achieve this, here are a few helpful tips that could be able to help you along your journey to being mortgage free.

1) Round-up your mortgage payments

Rounding up your mortgage payments can be a small but extremely helpful way of paying off your mortgage expeditiously. For example, if your mortgage payment is usually $1,127.00 per month, you could consider paying a flat $1,200.00 to your lender every month. This small change can really add up quickly, and depending on how long is left on your mortgage, can even knock years off of your remaining payment period.

2) Pay your mortgage bi-weekly instead of monthly

Instead of making one mortgage payment every month, make a payment every two weeks. If your mortgage payment is usually $1,000 per month, you can consider making a payment of $500 every two weeks. This will result in you ultimately putting more money towards your mortgage every year (since you will make 13 full payments instead of 12). Many people will not even notice the difference in the long run, since they may already get paid on a bi-weekly basis, so will be able to consider the payment simply a deduction from their paycheck.

3) Refinance your mortgage

Whether this option will work for you will depend on the rate that your mortgage is currently priced at and what rate is available to you in the market. If you can save a percentage point or two and continue to pay the same dollar amount on your mortgage every month, you will get it paid off years earlier than planned.

4) Make an annual lump sum payment

Making an annual lump sum payment straight to your interest can really speed up your mortgage payoff time. Perhaps the most common option is to take your tax refund, or a portion of it, and use it to pay off your mortgage. By making this an annual tradition, your mortgage will be paid off in no time.

Whatever your reasoning for desiring an early mortgage payoff, by implementing one or more of the tips in this article you will be well on your way to being mortgage free.