Buying a home is the largest financial decision and investment you’ll ever make….but it’s also the largest debt. We’ve rounded up some tips from Mortgage Brokers on how to pay off that debt faster!
- Make 2 Extra Paments a year: A growing number of banks are offering bi-weekly payment options so rather than paying once a month, you pay twice a month. This works out to 2 extra payments per year; helping you pay off your debt faster and spend less on interest!
- Shop Around: Who doesn’t love to shop? Call multiple mortgage companies and see what they offer, especially when interest rates are low. Often times you can refinance for less interest, less years and end up paying the same amount monthly but you’re saving money in the long run!
- Change Your W-4 Form: Many times we’re very excited about the potential refund we are eligible for after filing our taxes. However, it is possible to claim more exemptions on your W-4 form, get less of a refund at the end of the year, but add money to your monthly paycheck that you could utilize to add to your mortgage.
- Round Up Your Payments: Round up as much as you can, even if its only by $10 or $100. $1490 become $1500 or $1000 become $1100. You’ll shave months off of your mortgage.
- Take Advantage of Any Pay Raises: Raise? Yes, please! When you get a raise, utilize it to pay off your mortgage. For example, if 30% of your monthy income goes to your mortgage. When you get a pay raise, continue to use that same percentage. So 30% of your new monthly income will still go to your mortgage. It is another way to shave months off of your mortgage.
Having a debt for 30 years is no fun. Put these tips to use in 2016, stay dedicated to your plan of paying off your mortgage faster and you can easily cut 30 years to 20 or less! Good luck!
Photo Credit: http://www.zillow.com