1. Think twice before you opt for a mortgage
that extends fifteen, twenty or even twenty
five years. Instead, check a mortgage
calculator and shoot for a ten-year mortgage
to start. By tightening your belt and cutting
back on extras, it is even possible to be
mortgage free in five years or less. How can
this happen? In most instances, it helps if
you've made a large down payment on the
home in question, and received a good loan
rate.
remortgage calculator
2. The best way to pay off a mortgage early is by paying extra on your monthly
mortgage payments Using a mortgage calculator, you can determine how
much your mortgage payments will be for the life of your loan Making extra,
regular payments every month can save you tens of thousands of dollars over
the life of your loan If you can save $25 extra a month, and apply $100 extra a
month to your mortgage payment, you can save about $80,000 in interest
payments on a $120,000 mortgage! In addition, using the aid of a mortgage
calculator, you can reduce your loan by ten years! Apply the same basics
when you start with a ten to fifteen year loan and using the same principles, it
is possible to pay off your mortgage and become mortgage free years before
you thought such an event was possible
3. If you can't spare $100 a month, even $50 or $25 will help to pay your house
off early Adding an extra $50 to your payment will save you roughly $52,000
Not exactly chump change, is it? In addition, with those extra payments, you'll
knock between 5-6 years off your mortgage Only have about $25 a month to
spare? You'll still save an amazing $30,000 and take off a year on your
payments
4. Finding the extra change is something that most homeowners can do if they
cut out going out to dinner every week to once a month Instead of purchasing
meals in restaurants every day at work, try brown-bagging it And instead of
coveting that new car in the lot on the corner, save to pay off your mortgage
first Living mortgage free will enable you to enjoy those extras, in addition to
obtaining peace of mind, less stress worrying about retirement and health care
costs, and enable you to own your house free and clear
5. You can use a somekeyword to play with the numbers, and figure out how
much extra will save you over the life of your loan With house appreciation,
you may be able to reap even greater benefits if and when you decide to
downsize You can use the money you've made on the sale to buy a smaller
house outright, leaving your mortgage-due days behind forever Even if you
can't be consistent in paying extra every month, try to pay more than the
minimum due whenever possible
6. Make up for short months when you can Even if you like to write off your
interest during tax time, you'll benefit more by paying your loan off early and
living mortgage free Home mortgage interest tax breaks may net you about
$6,000 in write-offs, but being debt free is, well, priceless A mortgage
calculator will help you to determine exactly where you stand remortgage
calculator with your mortgage
7. Even if you've been paying the minimum payments on your mortgage for
years, there's no reason why you can't start paying extra now If possible, try to
refinance to a lower interest rate, if it doesn't kick up your loan too much In
addition, make sure that your mortgage lender won't penalize you for early
prepayment and find out if they have a cap for the most you can pay over the
minimum due amount
8. Even though you have a mortgage, doesn't mean it has to own you You can
take charge of your mortgage and live mortgage free with a little discipline, a
little patience, and a few extra bucks every month
