3 Hacks to Pay off Your Mortgage Early

Did you know? About thirty-four percent of homeowners in the U.S. no longer have a mortgage, according to U.S. Census data. If you’ve ever wanted to own your home with no mortgage payments, it’s completely possible plus you’ll have the stability and peace of mind of owning your home in an ever changing economy. Here are 3 hacks to pay off your mortgage early.

1.) Bi-Weekly Payments: This tactic is a no brainer. There are fifty-two weeks in the year and twelve months. If you pay half your regular mortgage payment every two weeks, you'll have made twenty-six half-payments, or thirteen full monthly payments by then end of the year. So you’re effectively making a full extra payment each year. Check if your bank will set up a biweekly mortgage payment plan and ask the bank to credit extra payments toward principal so you save more on interest expense.

 

2.) Round Up: You’d be surprised what a difference even paying just a little more will make on paying off your mortgage sooner. Even something as small as rounding your payments up can help. For example: Round a mortgage payment of $644 up to $650. A mere $6 more a month on a $200,000, 30-year loan can save you four payments at the end of the mortgage loan!

3.) Consider Refinancing: There are a few ways you can refinance your home loan to help you pay off your mortgage early. You can refinance your mortgage to a lower rate but keep making the higher payment which helps shave years off your mortgage. Or you can refinance your mortgage to a shorter term which cuts the amount of interest you pay sooner.

Paying off your mortgage may seem like a stretch, but it is actually a perfectly obtainable goal if you stay focused and try these 3 hacks to pay off your mortgage early. Just remember before you make extra payments you should read your contract to make sure you don't have any prepayment penalties. If you’d like more information about paying off your mortgage early or if you’d like to buy a Phoenix home, please contact the Regal Team today.  

Melissa Dierks

The Regal Team of RE/MAX Professionals

7111 W Bell Road, Suite 101

Glendale, AZ 85308

(623) 229-0154

www.theregalteam.com

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