If you have accomplished your goal of moving into your own home, you are certainly to be commended. This is, after all, considered to be the American dream. At the same time, if you are like most people today, you do have a hefty mortgage to consider. If you are looking for a way to get out from under those monthly payments once and for all, consider the following ways to pay off your mortgage early.
Choose Biweekly Payments
This is a popular, yet often underused strategy that can pay enormous dividends in the long run. Instead of paying once a month for your mortgage, make payments every other week. Over the course of a year, this will amount to 26 separate payments, which is equivalent to one extra monthly payment. On a typical 30 year mortgage, this can amount to significant savings over the life of the loan, and it will result in the length of repayment to be reduced substantially as well.
Refinance and then Reinvest the Money
Many times, interest rates will come down during the life of a mortgage. When they do, it is often beneficial to refinance the mortgage through a provider, such as Republic State Mortgage Co, and end up paying the loan off early. There are times when you save hundreds of dollars a month in payments when you refinance. The key here is to not spend the savings, but to actually you to pay down the principal each month. In such case, you could see a reduction of over nine year in terms of the life of the loan.
Increase Your Monthly Payments
If you can afford to pay more per month than is necessary, do it. This will allow you to save many thousands of dollars in interest, and it will save years off the life of the loan as well.
Make One Time Payments on Your Loan
There are times when people come into extra money. Perhaps you work on commission and just made the sale of a lifetime. You could come into a stock dividend payment, work related bonus, or inheritance. When you do, consider applying much or all of the extra money towards the principal on your mortgage. The savings will be immense.
These are four simply, yet effective ways of paying off your mortgage early. It just takes some planning on your part, and a bit of resolve. If you can do it, then you will be free and clear of your home loan before you know it.