How to Pay Off Your Mortgage Quickly

At the time of getting a loan, you will sign up to pay it off in thirty years or more. This is surely a long time, and it can bring up interest costs to a whole new level. By choosing to pay off your mortgage, you will be paying much less in terms of interest costs. A mortgage is only there to help you purchase your home, and once that is done, you need to focus on paying off the mortgage as quick as possible. The end result is that you will be mortgage free, and will own your home. At the time of selling your home, you could make a very good amount of money.

The following are some of the things you could do to pay down your mortgage quickly. Some of these steps would be hard for you to achieve, as your financial stability should be considered as well.

When arranging for your mortgage, you will be asked whether you want to make monthly payments, weekly payments or bi-weekly payments on your mortgage. The truth is that, if you pay weekly mortgage payments, you will be able to finish paying off your mortgage much more quickly. Some lenders don’t allow this for all applicants, as the credit history will be considered. By agreeing for weekly payments, you are ensuring that you will make payments for your home on a weekly basis. This increases the risk for the lender, so the lender will be very keen on seeing some extensive income proof. If you cannot make weekly payments on your mortgage, try going for a bi-weekly option.

If your mortgage option is open to extra monthly payments, you could certainly add on your monthly payments. So, if your monthly mortgage payment is one thousand dollars, you could add some extra money on top of it. By doing so, you will be paying down the principle rather than the interest. By quickly getting rid of the principle, the interest costs will lower. Now, this option is only available for individuals, so consult with your lender to see if you qualify to have this open.

During the initial mortgage signing, you will be asked whether you would be making lump sum payments on a yearly basis. This option can be discussed ahead of time, and most people will be able to have this open. You should be careful to provide proof of income. If you are going to be borrowing money from someone to pay for the loan, the bank would find out, since they have information on your income. The government will randomly select people to show proof of income, especially when they make lump sum payments on the mortgage.

Consider another side income or maybe having someone else going to work. If there is more than one source of income in the household, wouldn’t that help with making payments? If you have an open mortgage, you could save several thousand dollars and make it as one payment at the end of the year. This is one of the quickest ways in paying off a mortgage without having to struggle with payments.

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