Paying off your mortgage faster is an achievable goal. Most of us that have a mortgage would like nothing more than being mortgage free. But it is important to understand the process, so that you can utilize your money the best way possible. If you create a thorough plan and think through your options, you can be mortgage free faster.
Tips to Paying Off Your Mortgage Faster :
Increase your payments:
For most homeowners, it’s common to make their mortgage payments on a monthly basis. But there are other payment options available that can reduce the overall amount of interest you pay. Accelerate your scheduled payments to bi-weekly or even weekly payments. You will not pay as much interest by increasing your payment schedule. Check out our mortgage calculators to help you explore your options.
Shorten your amortization period:
Amortize your loan over a lesser amount of time. Typically, a mortgage amortization period is 25 years but you can reduce that to 5, 10, 15, or 20 years. When your term is up for renewal, you can negotiate with your lender to shorten your amortization period. With this option, your monthly payments will be higher. It is important to keep your eyes on the goal so you don’t get discouraged with the bigger payments. Your mortgage will get paid off faster.
Make lump-sum payments:
Any bonuses this year? A high tax return? Apply it towards your mortgage. A number of lenders allow you to make a lump-sum payment on your mortgage; one or more times a year without having to pay a penalty. The lump sum you can make is usually between 10% and 20% of the original mortgage amount.
Keep paying the same amount when you renew:
If you’re able to get a lower rate when your mortgage comes up for renewal, your payments will be lower. But instead of making the smaller payments, you should keep paying the same amount. Over the long run, you’ll pay less interest and your mortgage will be paid off faster.
Our Sunlite Mortgage agents will walk you through the choices available, and help you identify the most suitable mortgage product to your current situation. While looking at your short to long term goals. Call a Sunlite Mortgage agent today at 1.877.38LOANS and we will be happy to help you find a great mortgage!