Having a mortgage hanging over your head into the indefinable future isn’t ideal, but for many people, it’s a reality. In today’s financial situation, very few of us could afford to pay the upfront costs of a property – which is why for the majority of the US population, mortgaging is such a popular solution.
While you can’t do anything to avoid paying off a mortgage if you want to purchase a property, there are means of paying off your mortgage quicker to help you free yourself of your debt earlier. Here are the top 5 tops for paying off your mortgage faster:
1. Pay per two weeks, rather than per month
Most mortgage lenders will allow you some flexibility when it comes to exactly when you make your mortgage repayments. If you ask to pay half of your payment every two weeks, rather than your full payment every month, this will add up over the months to technically create one extra payment per year. You won’t even realise that you’re paying off more because it won’t hit you as one full extra payment.
2. Choose your mortgage provider carefully
While all mortgage lenders offer similar services, some will enable you to be more flexible with your mortgage payments, therefore giving you the freedom to pay your mortgage off faster. You need a mortgage lender that prioritises customer service, like loanDepot, so that you can discuss your mortgage in person before committing to anything. Take a look at the loanDepot reviews on Crediful for more information.
3. Refinance
A mortgage is a loan that spans over a lengthy period of time, and it’s normal for your financial situation to change during this period. If you find you have more cash to put to one side, consider refinancing your mortgage for a shorter term. Having a higher official financial goal to meet per payment will stop you from spending your money elsewhere on throwaway expenses.
4. Make sure you’re financially competent
When you’re looking to buy a property, it’s tempting to go for something at the very top end of your budget. It’s fine to be ambitious, but make sure you don’t bite off more than you can chew. Assess your financial situation, as well as your aspirations for the future. Determine whether these aspirations are realistic, and decide from there what you can afford to be putting towards your mortgage. Don’t let an overbearing mortgage have an impact on your quality of life.
5. Cut down on your expenses
What are you spending your money on every week? Get budgeting: write a list of your daily expenses and scrutinise it. Is there anything on there that isn’t vital? Maybe it’s time to start bringing a packed lunch to work instead of eating out every day. Those little cash payments add up over time, and if you cut them out, you’ll find you suddenly have hundreds of dollars of extra money that can go straight towards paying off your mortgage.
