With the interest payment that is paid on your mortgage, it is best to get the loan paid off as quickly as possible. The money that is saved by paying off the loan can be used for other things like paying off credit card debt and more. Here are a few tips for becoming mortgage free sooner rather than later.
- Get the advice of a Mortgage Brokers Kitchener.
These are the people that work for you and not the lending companies or mortgage companies. These are the same experts that can get better rates because they have worked with all the lending companies and already have their foot in the door. Most times mortgage brokers Kitchener’s will get better rates than if the buyer went to a lender on their own.
- Make a large payment once a year.
Many mortgage institutions will allow a mortgage holder to make a large payment on the principle once a year. Ask the lending company where your mortgage is held and see if this type of payment is allowed. Although the interest isn’t being paid down with this payment, it will still save you big in the end.
- Bi-weekly Payments
Instead of making one mortgage payment a month is it possible to make two? The more payments you make the faster you will get rid of this payment. No one likes to have a bill hanging over them so this will cut it in half. The money that is saved on interest could be better used for other things. Even if you cannot afford two full payments a month even half a payment extra will help. In the world of mortgage payments every little bit counts and can be used. This is one of the best ways to make your money work for you.
- Round up the payments
By rounding up the payments you are adding on extra money and paying down that interest. If your payment is $450 a month, pay $500. Although this isn’t a ton of money, it helps in the end and will not break your bank. For some people, making double payments is not something they are able to do at this point in time. By rounding up your payments you are then able to pay down the interest faster which gets the mortgage paid off.
- Use your income taxes and loose change.
Loose change can be anything from your jar of change that you keep to the birthday money Aunt Millie sent you. It all adds up and in the end, you will be happy. For those who want to pay off the mortgage even sooner there is also the option of getting a part time job and putting that income towards the mortgage payments.
There are many ways that you can save money and get the mortgage payment paid off faster. Not having a mortgage payment to worry about every month is a way to live with less stress.