Should You Pay Off Your Mortgage Early?

Pay Off Your Mortgage Early

In fact, we strongly suggest paying off your mortgage early. Why? Because it saves you a boatload of money!!! Plus, you will be out from under that hefty mortgage payment years early.  Let’s take a look at some things that might be keeping you from paying off your mortgage early.

What’s Stopping You: 

The Bought it and Forgot it Mentality: This is the biggest roadblock to paying off your mortgage early. If you’re a new homeowner you have likely bought a house at the top of your monthly price point and may not be able to afford much. Here are 4 Ways to Pay off Your Mortgage Early Without Breaking the Bank.

1. Shorten Your Loan Term

Most people don’t know this, but you can actually set your loan term for any number of years you want. In reality, 30 years is most common because the loan term needs to be stretched out that long to be able to afford the payments.

2. Make Extra Principal Only Payments Whenever You Can

Calling all new homeowners who are maxed out on their monthly payment, this one is for you. If you’re just starting out and don’t have much to spare on your monthly  payment, not to worry. Just make an extra payment whenever you can.

3. Make Bi-weekly Payments

One option is to make bi-weekly payments, meaning, you make a payment every two weeks instead of once a month. In this scenario, you would make half of your monthly mortgage payment  every two weeks, which will cut down on your interest in two ways.

4. Add an Extra Monthly Principal Only Payment

While any extra you can pay toward your mortgage will be beneficial, our  favorite method is to add a monthly principal only payment. A perfect use for that income increase it to make extra payments on a monthly basis.

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