How to Pay Off Your Mortgage Fast

Owning a house is great as it not only provides a roof over your head but also gives you great pleasure of knowing that you own it. Most people are unable to buy a home on cash and therefore have to mortgage it.

The mortgage can last from a few years to up to thirty with various changes in the annual percentage rate and the monthly installments. Sometimes, one can feel a great burden due to the monthly installments. Getting rid of the mortgage earlier than its actual period is possible but it does take quite a bit of effort.

Instructions

  • 1

    Set a Date

    In order to pay off your mortgage fast, you must keep a target date by which you want to clear everything. This is the most important step as all the preceding instructions will depend on this. Make sure that the date which you decide is practical and can be achieved.

  • 2

    Refinance

    This is an excellent way of reducing your required payments each month. The important factor is that you continue to pay the same amount as before so that you can pay off your debt quicker.

  • 3

    Pay More than the Installment

    Whatever your installment is, try to pay more than that. This will be the amount that will be removed from your principal which will in turn automatically reduce your monthly payment. Remember that the bulk of the mortgage payment is based on interest and once you pay more than the minimum amount, only then can you bring down the principal amount.

  • 4

    Cut Corners

    You will need to cut your expenses. It is not all that hard in reality. You can ditch cable television for a while, buy groceries in bulk from wholesale stores, have a more energy efficient vehicle and make savings all around. The money saved can be used for paying greater monthly payments and cutting down on the principle amount.

  • 5

    Add to Income

    It is also a good idea to have an extra job or a side business that you can run with your current job. This will allow you extra money which you can use towards the payments of your mortgage and help you in paying it off faster.

  • 6

    Tax Refund

    Most people receive a decent refund on their taxes at the end of the fiscal year. You can use this money for the purpose of reducing your mortgage payments. This will help in reducing your monthly payment to some extent and you can continue to pay the same amount as before to bring down the mortgage fast.

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