Thinking About Paying Off Your Mortgage?

For most homeowners, each month means another mortgage payment. However, it may be prudent to consider a slight alteration to the routine. By adding just one extra payment a year, borrowers can cut thousands of dollars in interest and shave several years off the life of their loan.

 

Depending on your situation, paying your mortgage off early can reap tremendous benefits. Whether it is paying more now to preserve your retirement funds or simply reducing the amount of interest you pay over time, there is likely a way for you to significantly benefit.

 

If your ultimate dream is to pay off your home mortgage, consider your options. Take a realistic look at your current financial situation. The most important thing to do is reduce your debt. Once accomplished, consider the many ways to accelerate your mortgage payoff.

 

 

Pay Biweekly

Splitting up biweekly payments allows you to make 26 payments (one extra full payment) a year, which gets you closer to paying off your mortgage.

 

Make One Additional Payment Each Year

Transfer your biweekly payment into a separate account, and then withdraw your monthly payment from the same account. Gradually, an additional monthly payment will accrue, plus you will earn interest on the account.

 

Keep Your Eye On The Ball

Squeeze any additional money that may fall your way (work bonus or tax refund) toward your goal of paying off your mortgage. Be sure to specify that the payment is to be applied to the principal, not future payments.

 

Be There Before You Know It

Every little bit helps. Paying an additional $20 per month on a $100,000 loan at 6.5% interest will save you $13,000 over the course of your loan. Be serious about your goal. It is achievable with wise financial planning

 

Have a Heavenly Day!™

 

Angel