We all know owning a home is a big step. It’s one of the biggest if not the biggest purchase you will make in your entire life. Your home mortgage will also be the biggest debt you occur in your lift. Sometimes the weight of that debt can make you want to scream. You pay your home mortgage bill every month only to discover that you are mostly just paying your interest. With some simple planning, you can pay your home mortgage off fast. Paying off your mortgage fast will save money on your home mortgage.
Where to start paying your home mortgage off fast
If you are shopping for a home start by improving your credit so you can get a better rate. The lower the interest you can get the better off you will be as you work off the debt over time. Gathering a large down payment for your home will help lower your interest rates as well.
If you already have your home odds are your credit has improved and you have put hard work into improving your home since you got your home mortgage and now may be a good time to refinance at a lower interest rate.
Start paying more on your home mortgage
Contact your home mortgage provider and ask how to have additional payments applied to your loan in the right way for you to pay it off faster. Always check your statement to be sure the extra money was applied to your loan and not to the interest.
Can’t afford to pay extra monthly? Why not make an extra payment each year. Either paying extra monthly or yearly the same thing applies. Stay on top of things and be sure it is applied to your loan the way you want it to be. While this seems small you can manage by saving just 1/12th of your monthly payment each month. In 12 years you will have paid 13 years of your mortgage. Not too shabby for a painless plan to pay off your home mortgage faster.
Toss extra money into your mortgage. Got a tax return? Make it work for you by paying into your home mortgage with your tax return. Some home mortgages offer you money back at the end of each year left over from taxes and such. Apply that money right back into your mortgage.