July 22nd, 2018 11:50 AM by Jackie A. Graves, President
WASTING MONEY ON INTEREST PAYMENTS! If you’re like me, you have a 30 year
mortgage that you’d love to pay off. Paying off your mortgage early would
not only be a huge financial weight off your shoulders but could save you
thousands in interest payments. Through budgeting and careful planning,
being mortgage free is attainable.
are 8 easy ways to pay off your mortgage early:
1. Bi-weekly payments plus $200
extra per month.
bi-weekly payments instead of monthly payments could easilly turn your 30 year
morgage into a 22 year mortgage. Automatic bi-weekly payments set up by
your bank are an excellent way to save money on your mortgage without thinking
about it every month. Just be sure to check with your bank to ensure you’re not
paying extra for this service.
2. Pay an extra $500 per month
towards your mortgage.
might sound like a lot but you would be surprised how easy it is to budget an
extra $500 per month to pay down your mortgage faster. This extra monthly
payment, especially in this beginning on your loan term, will really cut down
on the high interest payments. Trust me, it’s worth giving up a your daily
Starbucks coffee for!
3. Put all of your extra
bonuses on your mortgage.
you get a yearly Christmas bonus? Or quarterly bonuses? Or sales commissiones
for extra sales? Putting all of your extra bonuses on your mortgage can
really add up and will quickly payoff your mortgage. Make it a plan today to
automatically transfer all bonuses to your mortgage. Better yet, set it up
through your company as an electronic transfer so you never see the money and
get tempted to use it on something less important (like a new TV!).
4. Put your annual tax refund
on your mortgage as a one time extra payment.
you’re like MANY people, you are still getting an annual tax refund and it
might even be thousands of dollars. Put that towards your mortgage and it might
be even a full extra payment each year. But again, decide today that you will
always put the tax refund on your mortgage. Don’t just spend it on another
family vacation. Pay off the house first and then take debt free vacations
5. Refinance to a 10 year
your mortgage from a 30 year mortgage to a 10 year mortgage can save you tens
of thousands of dollars in interest. Of course, there are additional closing
costs and fees associated with refinancing, so find a reliable online mortgage
calculator and compare the costs.
6. Refinance to a 15 year mortgage
to a 15 year mortgage along with making extra payments every month is another
surefire way to pay it off quicker. Switching to a 15 year mortgage instead of
a 30 year will likely be only a couple hundred dollars more per month than your
30 year mortgage. So getting a 15 year mortgage could mean a savings of around
$100,000 in interest. Wow!
7. Refine your budget
over your budget and use the extra money to pay down your mortgage. Budget,
Budget, Budget. It’s all about prioritizing the budget to “find” extra money
that is currently being used for something unnecessary (and then redirecting it
to your mortgage payments).
8. Make it automatic online.
making your extra payments online so you don’t have to make extra money
payments each month. Making your extra payments automatic will also keep you
from spending the extra money on something else that you don’t really NEED.
paying off your mortgage early instead of paying it off in the scheduled 30
years could save you up to $100,000 in interest!! Try some or all of these tips
to payoff your mortgage early. Set a plan today and make paying of your
mortgage early a priority!
much money could you save by paying off your mortgage in 10 years? $50,000?
love to hear how much money you’re saving by paying off your mortgage early.
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