Homeownership is a goal of most adults, it is so rewarding to pay off your mortgage and claim your money back.
Paying it off faster has many benefits, including saving you thousands of dollars in interest. Here are 3 simple tips to pay off that mortgage faster so you can breathe a sigh of relief at having no more mortgage payments.
1. Pay off Your Mortgage Faster with a 15-Year Mortgage
A 30-year mortgage is the industry standard because of its lower monthly payment, but it also costs thousands of dollars more in interest over the life of the loan than a 15-year mortgage. If you’ve found that your income has gone up and you have more flexibility in your spending, refinancing to a shorter term mortgage might be the right step to pay off your mortgage in half the time.
It’s important to talk to an experienced lender to compare interest rates and closing costs for a refinance. In some situations, refinancing might not be the best option and you could get your mortgage paid off faster by trying other methods.
2. Make Extra Payments
Whether you choose to refinance or not, making extra payments is one of the best ways to speed up your mortgage pay-off. Extra payments have one huge advantage – the entire amount of the extra payment goes straight toward principal. Principal-only payments make a much larger dent in your remaining loan amount than a standard payment, so you should take any chance you get to put a large lump sum toward your mortgage. Many people choose to put work bonuses, tax returns, or other large sums toward their mortgage to get it paid off as quickly as possible.
3. Spend Less Money
It can be easy to feel like you have no extra money to pay toward your mortgage, but many people don’t have a good idea of where their money is actually going. You can get a good grasp of your budget and figure out where you can cut back by taking a close look at your expenses.
Try looking back through your bank statements for the last few months and figure out where all that money is going, and then find places to spend less. You might be surprised to find that you spent a few hundred dollars on fast food last month, or a lot of money on subscriptions you don’t use. If these expenses aren’t important to you, reduce them and put the money you save toward your mortgage instead. You’ll be amazed at how quickly even small amounts of money can help reduce your mortgage amount.
Legacy Home Buyers is Here
Does it feel overwhelming to pay off your mortgage in Texas? Are you worried you’ll never get there? Legacy Home Buyers is here to help! We buy houses in Dallas, Texas, and the surrounding area, for cash so you can be mortgage-free in a matter of days. We’ll buy your house in any condition and save you the hassle of listing with a real estate agent. Contact us today to get your cash offer!
