Tips for Paying Off Your Mortgage The days of refinancing your home for extra cash are slowly fading into the past. Since the recession, most homebuyers have felt that completely paying off their mortgage was is worthwhile as it provides them with peace of mind and outright ownership of their home. In times of financial difficulties, peace of mind and escaping debt are indeed worthwhile pursuits. Whether you are looking at purchasing Utah manufactured homes or pre-owned homes in south Florida, you should consider finding a way to pay off your mortgage quickly. Here are a few useful tips to help you along the way.
Refinance with a Shorter Term Most mortgages are set to last for 30 years. Did you know that you can refinance your home and end up with a mortgage that is only ten to fifteen years? This may be a good idea if you are interested in paying that mortgage off before you are retired with grandkids. Frequently, people choose the fifteen year mortgage because it still provides a substantial decrease in the time length while not increasing monthly payments too much. Remember that these shorter mortgages will have higher payments, but it will be worth it when you own your home outright and are that much closer to being debt free.
Round Up or Pay More Just because the mortgage payment is a specific number does not mean you are required to pay exactly that amount. Now, it also doesn’t mean that you can pay less than that amount either. However, you can pay more and doing so will reduce the length of your mortgage. One hundred dollars more each month over dozens of months will significantly decrease the amount you owe. This is because more of the payment will go towards the principal and not towards the interest. If you cannot afford a one hundred dollar price hike, simply round up to the nearest ten or one hundred digit. Although small, these amounts will decrease the length of your mortgage.
Use Your Tax Return If you are among the lucky people who get a tax return instead of owing the IRS, why not take that little extra money and apply some or even all of it towards the principal of your mortgage. Big payments like this can help you get ahead and shorten the time frame of escaping that looming debt. Request a statement from the bank that tells you how much you still owe. Use this number and plan ahead to make higher payments each month. Some people have even doubled their monthly payments four times a year. Regardless, you are going to have to pay more in a shorter period of time to get rid of the mortgage. These are just a few ideas on how you can throw more money at that mortgage monster. If paying off your debts is a priority to you, then
utilize these tips to accomplish that goal. It may be a difficult sacrifice, but you will be glad you did it in the end. Get started now with a plan to get ahead!