Making Paying Off Your Mortgage Early a Feasible Option
Attempting to pay off your mortgage early may seem like a pipe dream. Yet similar to most things, any and every effort to make it happen gets you closer to reaching your goal. On our blog today: hints at how to pay off your mortgage early while reducing costs! Before considering any of the tips below, always check with your mortgage officer to see which methods are a feasible option for you.
The first tip for reducing the length and cost of your mortgage is to consider refinancing. Whether it be to a shorter term or better rate, this method may end up reducing long-term expenses and length of mortgage payments. While initially, the short term costs of refinancing may be pricey, in the long run, it may allow you to pay off your mortgage up to ten years sooner than expected while saving money on interest costs.
Another alternative to long-term mortgage payments is to aim to pay a little more each month. This option is great for those who may be on a tighter budget. It allows you to pay off your mortgage sooner while not having to budget as much up front. Even setting aside $20 a month can shave off years of payments while simultaneously reducing the amount you spend on interest costs, making the home-packed lunches worth it.
Differing mortgage companies may have prepayment penalty fees, so it is very important to reach out to your loan officer before deciding on any of these methods of shortening your loan payments. If prepayment penalties are a factor, it may be an option to make one extra mortgage payment at the end of each year. Not only will it reduce the longevity of your payments, but it will also lower interest costs. Instead of coming up with a lump sum at the end of each year, setting aside small amounts monthly may allow you to reach your goal of an additional end of the year mortgage payment. Consider it as your 13th-month payment.
Reference the link below and talk to your loan officer today to consider how to achieve paying off your mortgage early!