Become Mortgage-Free Faster!
For many homeowners, the biggest question is “How can I pay off my mortgage as fast as possible?” Owning your home outright provides you with greater financial freedom, flexibility and the ability to focus on other financial goals like retirement or saving for your child’s education. It doesn’t even have to be that hard - you’ll be amazed how small changes in your mortgage terms and payments can make a big difference. Here are some simple strategies to help you pay your mortgage off faster. These tips will help reduce your amortization:
1. Make your regular mortgage payments more frequent: Save interest and become mortgage-free sooner by choosing biweekly or weekly payments rather than monthly payments. This will have the effect of making two extra monthly payments every year, without even noticing it.
2. Increase your payment amount when you can: If you’ve had a mortgage for a while, you’re likely used to the routine of making regular payments. Now might be a good time to consider if you could afford to increase your payment a bit. Also, whenever your household income rises (i.e. salary increase, new job, etc.), consider increasing your mortgage payment at the same time.
3. Increase or double-up your payment: To help pay off your mortgage sooner, you can double your current mortgage payment of principal and interest on any regular payment date or increase your payment amount up to 20%. This additional amount will go directly towards your principal without any cost or penalty. The increase of payment options varies with each lender. Ask MMG what your options are. These payment increases will always be in addition to making lump sum payments.