Say Good-bye to Your Mortgage
Paying off your mortgage early is an excellent goal, and one that many homeowners share. Whether you're after the security of owning your home free and clear, the comfort of being debt-free, or a bit of both, learning how to pay off your mortgage early requires a clear plan.
When it comes to paying off your mortgage early, there is no magic solution. The good news is with effort, planning, and persistence, you can absolutely accomplish your goals, and say goodbye to monthly mortgage payments earlier than expected.
Pay Your Mortgage Off Early With These Simple Steps
One of the best tips for paying off your mortgage early actually starts before you even sign on the dotted line. If you're still in the market for a home and thinking ahead to your mortgage, set a budget based on an honest assessment of your resources. Most of our tips involve making extra mortgage payments when you are able, and that's much easier to do consistently when your normal monthly payments fit comfortably into your budget.
• Set a Target – Don't underestimate the power of setting goals. Choose an attainable target date to pay off your mortgage early, and do your best to stick to it. Your target date is the light at the end of the tunnel, and setting a specific date makes it easier to plan for how you will achieve your goal.
• Pay Extra When Possible – Making extra payments is of course key to getting your mortgage paid off, and there are a number of ways to do so. You can simply pay extra each month based on what you can afford, or you can set a goal of making one extra monthly payment every three or four months. No matter how much you add to a payment, be sure that the extra money is applied to your principal, and not your next payment.
• Try Bi-weekly Payments – Opting for bi-weekly rather than monthly payments is one of the simplest ways to pay extra over time. Paying every two weeks basically adds one full extra payment for every 12 month period, but that payment is spread out enough that it won't make a big dent in your budget.
• Cut Expenses – Looking to make extra payments, but having trouble finding room in your budget? Take a look through your expenses, and see if there's anything you can trim away. Even small changes, like packing a lunch for work instead of buying, add up over time, and the extra money will help pay down your principal sooner. You may need to sacrifice a few luxuries in the short term, but the end goal is worth it.
• Analyze Refinancing Options – Refinancing is very much dependent on the details of your mortgage, and there's little incentive to refinance if you've already locked in low interest rates. If you think you can get significantly better rates, however, then refinancing is worth a look. Speak with your financial adviser to see if it's the right option for you.
Paying your mortgage off early takes time and persistence, so committing to a clear plan is a big part of the process. It's a goal that many homeowners are able to accomplish, and it's certainly within reach if you're willing to make the effort.
Home mortgage professionals will help you set realistic goals and secure a loan to fit your personal needs. If you're buying a house in the Dallas-fort Worth real estate area, consider DFW Texas Mortgage. They offer a variety of mortgage products at competitive interest rates and fees for both pre-owned and new home financing.