How To Pay Off Your Mortgage Faster
A home is a big purchase. Because it’s such a big purchase, it can take a long time to pay it off, oftentimes as long as 30 years.
But it doesn’t have to take that long! You can pay off your mortgage in a shorter time frame, if you use the right strategies.
A recent article from realtor.com outlined strategies homeowners can use to pay off their mortgages quickly — without going broke in the process — including:
1. Make one extra payment per year
It may seem like making a single extra mortgage payment per year wouldn’t make much of a difference, but those single payments add up. Making one extra payment per year can help you knock about four years off of a 30-year mortgage.
2. Pad each monthly payment
Another strategy that can knock some time off your mortgage is to add a bit extra to your payment each month. For example, let’s say you have a $200,000 30-year fixed-rate mortgage with an interest rate of 4 percent. Over the course of that loan, you’d pay more than $143,000 in interest. However, adding $100 to your monthly payment would allow you to pay off the loan about five years sooner—and save almost $27,000 in interest in the process.
3. Refinance to a shorter-term loan
If you bought your home when interest rates were higher than they are today, then refinancing to a shorter-term loan (like a 10 or 15 year fixed-rate mortgage) can not only help you pay off your home faster, but also save a significant amount of interest in the process. Just keep in mind that your monthly payments will likely increase because you’re shortening the length of time to pay off the balance, and you’ll also have to pay closing costs when you refinance. Before you refinance, talk to a lender to make sure that the pros outweigh the cons.
Did you enjoy this blog? Feel free to share it on Facebook, Twitter, and LinkedIn by clicking the green buttons on top
Stay up to date on the latest real estate trends.
Not every buyer who shows interest is serious about actually putting in an offer and moving forward with a home purchase, no matter how enthusiastic they may seem.
Let’s take a look at 11 things that could be a sign that your real estate agent is actually a secret superhero in disguise
For some buyers, stress and excitement can cause them to say things without thinking about them which could potentially cause the process to take a turn for the worse.
The good news is you’re not the only potential seller feeling that way, and it’s not too late to capitalize on a sellers’ market.
Spring is officially upon us! Here are some of the spring’s biggest decor trends you can incorporate into your living room.
No one wants to go through the foreclosure process, but if you have a foreclosure in your past, it doesn’t necessarily mean you won’t be able to get a mortgage.
Buyers often wonder how long it’ll take to find the perfect home, so they can plan when to start their home search in earnest.
There are a lot of things inspectors include in their report that aren’t worth losing the house you love over.
