5 Tips to paying off your mortgage faster
If you have a mortgage and hate paying the interest, then you are probably wondering how to pay it off faster. There are a few ways that you can pay off the mortgage without having to go broke and starve in the meantime.
- Round up the mortgage payments.
Although this doesn’t sound like much, it can save you a lot of money in the end. Make every dollar work for you when it comes to paying the mortgage. The faster the loan gets paid, the more you will be saving in interest. For example, if your mortgage payment is $551, round it up to $600. The extra $49 will do more than you think and it isn’t killing you to make the extra payment. Over time, the rounding up pays off that interest and you are making leaps and bounds in the payments.
- Make payments bi-weekly.
If your mortgage payment is $551 a month and you have no trouble paying it, consider making payment every two weeks. By making the extra payments you will have your mortgage paid off in half the time. Not only will the mortgage be paid off in half the time, you will be saving a lot of money in interest that can be used for other things.
- Put ‘loose’ change towards your mortgage payments.
Loose change can be the change you throw in a jar or any money that is unexpected. Unexpected money can come in the form of gift money or even your income taxes. Any money that comes as a surprise can be used towards your payments.
- Do your research.
Many become comfortable with the mortgage payments and just leave the payments as they are. The way to save money is to stay informed on what is going on in the mortgage world and interest rates. If the interest rates are down low and you are stuck in a locked mortgage maybe it is time to ask what the penalty would be if you refinanced. Although there is a penalty, it could save you thousands of dollars in the end. This would be an appropriate time to use a Mortgage Brokers Kitchener.
- Make a larger payment once a year.
Most banks will allow you to make a large payment once a year that can be used just toward the principle of the loan. If your bank does allow this then go for it. By saving your loose change and extra money you can make that large payment.
Everyone loves the idea of being able to save a large chunk of money. When looking to save money on your mortgage payments, it can be done without having to break the bank. The little bit of cash that is put away throughout the year can possibly save you thousands in the end.
Once your mortgage is paid off you are then able to save for other things like a retirement plan or other bills that are outstanding.
Taking your time and doing the research will always save you money. Read up on the industry trends and you will be good to go.