The sooner you pay off your mortgage, the better! Once your mortgage is paid off, you stop accruing debt from interest. And, especially in this economy, debt issomething to avoid. Reata Realty has put together 4 Tips To Pay Off Your Mortgage, FAST!
- Instead of making a mortgage payment once a month (12 times a year), make half-month-mortgage payments biweekly (13 times a year). At the end of the year you will have made 13 full payments, versus 12. This extra payment should be applied directly to your principal, which can add up quickly, and help you pay off your mortgage faster.
- Boost your credit score. If it isn’t already, try to get your credit score up into the high 700s or, even better, into the 800s. If you keep your credit score up, you’ll greatly improve your chances of refinancing and/or lowering your interest rates, which could save you a good amount of money.
- Round up payments. It doesn’t take a lot of math, or effort, and it could really pay off in the end. You can round up to the nearest 5, 10, 20 or 100, whatever you want. Many people already round a payment like $1,450 up to $1,500, so why not just pay 1500 a month? If you just cut out a couple of coffees a week, it’s pretty easy to save up the money for a slightly bigger payment
- Refinance into a shorter loan time period. If you did sign for a 30-year loan, consider refinancing into a 15-year loan. You’ll be paying less in interest (although your monthly payments will be higher) and you’ll be able to pay off your mortgage faster. If you can afford higher monthly payments, it is definitely in your best interest to refinance into a shorter loan time period.