7 Tips For Tackling Mortgage Debt
Purchasing a home is such an exciting milestone! The mortgage, however, is a bit less fun. With the right strategy, you can potentially pay your home off more quickly.
Before You Begin:
Some states implement prepayment penalties, which could cost you more to pay off the mortgage early. Find out if these rules apply to you before proceeding.
1. Bi-weekly Payment Plan
Pay half your monthly payment every two weeks. Some months will have an additional payment, which could add up to an extra full payment per year.
2. Matching Principal Payment Plan
Add your initial principal payment to every monthly payment that follows. This shaves years off your mortgage and saves interest.
3. Make an Extra Full Payment per Quarter
In some cases, this can take up to 11 years off your mortgage.
4. Cash Influx
Put unexpected cash – like an inheritance, birthday gift, tax refund, etc. – toward your principal balance.
5. Refinance to a 15-Year Loan
This is helpful if you’re a few years into the mortgage and on track to pay it off early. With rates hovering at record lows, now is a great time to consider refinancing!
6. Divide Your Mortgage Payment by 12
Add this amount to your monthly payment and make one extra payment per year.
7. Do What You Can
Make small budget cuts and save money to contribute toward your principal.
Invest in yourself! Take an online course to improve your skills or find a personal growth webinar that works for you.
For more strategies on how to tackle your mortgage or whether you can pay it off early, give me a call! As your trusted professional, I am happy to help you figure out your options.
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