Pay Down Your Mortgage Faster

Most people consider that they are going to have a house payment for the better part of their lives. Guess what? It doesn’t have to be that way. Many people who avoid and even despise other types of debts are okay with having a mortgage payment. Now to each their own…the way you feel isn’t right or wrong. Just don’t forget that it doesn’t have to be that way. Today I want to share three tips for paying down your mortgage faster. Cutting off even a few years at the end of your mortgage can save you a bundle of interest and give you a few more years free from a monthly payment!

Make Weekly Mortgage Payments

Some banks and mortgage companies will allow you to set up your payment this way. Although you need to keep in mind that it will be coming out each week, this cuts down on the interest for the life of your loan. Don’t be afraid to ask your bank or mortgage company what all of their options for payments are. This well help you stay informed and make the best financial decisions for your life.

Make One Extra Payment Per Year

This could be the perfect option for anyone who gets a bonus throughout the year. It could also work well if you are paid on commission, as some of your checks are much larger than others. It can be hard to part with a chunk of money when you have it, but one extra payment toward your principal each year can cut off nearly 5 years from your loan and save you tens of thousands in interest. WOW! This all depends on your loan type, interest rate and payment.

Put A Specific Savings Plan In Place

Maybe you can’t commit to one of the above two options. So another idea would be collecting all of your coins or change for a year. Then make an extra principal payment with it. Another idea would be cutting down on your restaurant and entertainment budget each month and automatically paying that much more on your monthly payment. It is key to remember that every bit helps!

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