6 Ways to Pay Off Your Mortgage Early

Your mortgage. While it is most likely your largest asset, it is likely also your largest form of debt. And let's be honest, it can feel like a heavy burden, especially when you look at the interest you'll be paying on your mortgage over the long term. By paying an extra $100 toward your mortgage each month, you could save literally thousands of dollars in interest over the term of your loan. So, if you've ever thought about ways to pay off your mortgage sooner, consider the following ideas:

  1. Start a Side Hustle: Love kids? Are you crafty? Put your extra hobbies and talents to work by making extra money and then applying your extra income to your mortgage principle.

  2. Make Your Payments Bi-Weekly: This may not sound like much, but by paying bi-weekly instead of monthly, you end up making a 13th payment each year, which is very significant long-term.

  3. Refinance Your Current Mortgage: Take advantage of lower interest rates by lowering your monthly payments, loan term or both.

  4. Round Up Your Mortgage Payments to the Nearest $100: Say your monthly mortgage payment is $1423. By rounding up and paying $1500/month, you can start paying down your balance faster than you might think.

  5. Slowly Increase Your Monthly Payment: By slowly adding extra money to your mortgage payment each month, you can really make a dent in your balance without feeling the sting of the extra outgoing money.

  6. Apply Any Unexpected Income or Earnings to Your Mortgage: Get a raise at work? Get unexpected money from a friend or loved one? You can apply it to your mortgage premium to pay it off sooner.

  7. Use a Combination of the Above: Not all of these approaches will work for everyone. But you can make an even bigger impact if you're able to utilize two or more of these ideas above.


Source:


https://www.entrepreneur.com/article/373840

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