Paying off a home mortgage early not only can help you save thousands of dollars but also enable one to gain your financial freedom earlier. Having to pay for your mortgage loan for the next 30 years can be pretty stressful for one especially if you are the sole bread-winner for the family! It is every debtor's dream to clear off their mortgage loans as early as possible.
What are the tips which you can use to help in paying off your mortgage earlier:
a. The simplest way would be to pay a little more each month, even for just a mere $100 in addition every month helps. This action will help to cut a 30 years mortgage to be reduced to 24 years only! Just imagine that would be a reduction of 6 years!
b. Get your bank to setup for automatic payments every alternate week. Because some months have five weeks, you may not be consciously aware that you have made a total of 13 payments throughout one year period instead of only 12 payments. This extra one month payment will go towards the principal of the loan. Your interest due will be less, if you continue with this consistency, your principal will shrink faster and faster with this snowball effect although it may not be obvious to you initially.
c. Drop whatever extra money you get into the principal balance of your mortgage. They can be incentives from extra sales you have made, annual bonus, lottery prizes which you have won.
d. Keep telling yourself the goodness of being debt-free. Imagine how good it would be if you are completely free from debt. One will also feel less stressful when he is totally out of debt. Keep encouraging yourself that only after your mortgage debt is paid off, the home can be yours. Owning a home is an important investment as it provides a safe shelter above one's head.
f. Getting a specialized credit card reward program that helps "paying off " your mortgage indirectly. How will this program work? Every time you paid for the credit card, 1% of the payment will get rebated to your mortgage. Because of this benefit, you can replace your usage of debit card on your daily expenses with the credit card to take the advantage of the rebates.
You may check out the participating credit card companies from your mortgage company.
What are the tips which you can use to help in paying off your mortgage earlier:
a. The simplest way would be to pay a little more each month, even for just a mere $100 in addition every month helps. This action will help to cut a 30 years mortgage to be reduced to 24 years only! Just imagine that would be a reduction of 6 years!
b. Get your bank to setup for automatic payments every alternate week. Because some months have five weeks, you may not be consciously aware that you have made a total of 13 payments throughout one year period instead of only 12 payments. This extra one month payment will go towards the principal of the loan. Your interest due will be less, if you continue with this consistency, your principal will shrink faster and faster with this snowball effect although it may not be obvious to you initially.
c. Drop whatever extra money you get into the principal balance of your mortgage. They can be incentives from extra sales you have made, annual bonus, lottery prizes which you have won.
d. Keep telling yourself the goodness of being debt-free. Imagine how good it would be if you are completely free from debt. One will also feel less stressful when he is totally out of debt. Keep encouraging yourself that only after your mortgage debt is paid off, the home can be yours. Owning a home is an important investment as it provides a safe shelter above one's head.
f. Getting a specialized credit card reward program that helps "paying off " your mortgage indirectly. How will this program work? Every time you paid for the credit card, 1% of the payment will get rebated to your mortgage. Because of this benefit, you can replace your usage of debit card on your daily expenses with the credit card to take the advantage of the rebates.
You may check out the participating credit card companies from your mortgage company.
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