How to Pay Down Your Mortgage Faster
If you've got a home mortgage, chances are that you'd like to pay it off as fast as possible. Nothing beats paying off a mortgage faster than the term of the loan. In order to pay down your mortgage faster, it will take some serious discipline. Here's how to pay off your mortgage faster.
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Things You'll Need
- Discipline
- Every ounce of free cash that you have
- Possibly, a mortgage refinance
Instructions
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Consider refinancing your mortgage to possibly reduce the term of your loan. This is especially helpful in an environment where interest rates are falling. This can really help you pay down your mortgage faster. See the resources section on information on how to refinance your mortgage.
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If refinancing is not an option, develop a plan to pay extra on the principle amount of your loan. By default, this will reduce the amount of time that it takes to pay down your loan. This will take planning and budgeting. You'll need to identify any amount that you can contribute as extra, even if it's as little as an extra $25 monthly.
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Make periodic extra lump sum payments to pay down your mortgage faster. Raise cash any way possible. Sell things online. Have a garage sale. Recycle aluminum cans. Do whatever it takes to raise cash for a lump sum payment. This is another way to pay extra on the principle amount of the loan.
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Tips & Warnings
Although it may be sacrificing a lot to pay off your mortgage early, just think of how nice it will be to not have a house payment anymore!
When refinancing, research all of the closing costs and fees associated with the process.
