Once you buy a house, you’re locked into a mortgage for 30 years, right? Wrong. Most banks have done away with prepayment penalties and made it easy for you to save money on your mortgage and pay it off early. Your mortgage may be the biggest expense you ever have, so why not cut it down and get rid of it as quickly as possible? These tips make it easy to pay your mortgage down fast.
Add Two Extra Payments Per Year
Typically, most lenders require you to pay your mortgage once per month on the first day of the month. This adds up to 12 full payments per year. However, a growing number of banks are offering biweekly payment options. Rather than paying once a month, you pay every two weeks. This works out to two extra payments per year. In addition, this may pay down the loan faster and help you spend less on interest!
Also Read: How to Start a Retirement Savings At Any Age
Round Up Your Payments
Rounding up your mortgage payment is a fairly easy way to save money on your mortgage and pay it off early. Round up as much as you can. Even if it’s just up to the next $10 mark (paying $760 instead of $752.10) or the next $100 mark ($800 instead of $712), you can shave months off of your mortgage and be debt-free faster.
Refinance When Interest Rates Are Low
Refinancing may not be a good choice if you simply plan on paying the regular amount for another 30 years. But if you have the dedication needed to stick to your original payment plan, you can save lots of money with a lower interest rate. Rather than taking advantage of the new lower payment, simply continue to make your old payment. It’s a painless way to save money!
Also Read 3 Easy Ways to Get Your Budget Back on Track
Your mortgage will likely be your biggest debt, but you don’t need to cart it around for 30 years. These years can get you into a paid-off house quicker.
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