Tips And Tricks To Help You Pay Off Your Mortgage Loan Early

Homeownership has many benefits. However, spending the next 30 years of your life paying off a mortgage loan can make it difficult to move on to other financial goals. Thankfully, paying off a mortgage loan early can be easier than many people realize. Continue reading below to learn a few tips and tricks that can help you accomplish this worthy goal.

Pay Bi-Weekly Rather Than Monthly 

For many people, the idea of paying anything extra towards their mortgage can seem impossible. This is especially true for people who are currently living paycheck to paycheck. If you are in this situation, you will want to consider paying half of your monthly mortgage amount every two weeks rather than paying once a month. While you will not see a change in your monthly budget using this method, you will ultimately end up making an extra mortgage payment each year. This additional payment will help you to save on interest and can shave years off your mortgage. 

Refinance When Interest Rates Are Lower

If you purchased your home with a high-interest mortgage loan, you will want to consider refinancing this loan when interest rates drop or your credit improves. Securing a lower interest rate will allow you to save a ton of money in interest charges over the life of your loan. However, refinancing can also provide you with a great opportunity to pay your mortgage off early. To do this, simply continue making the same monthly payment that you were making before refinancing. Since more of your payment will be applied to the principal of the loan, you will be able to pay off the loan much faster. 

Round Your Mortgage Payment Up Each Month

If you are looking for a very straightforward way to pay off your mortgage loan early, consider rounding up your mortgage payment each month. For example, if your current payment is $560. simply round up and pay $600 per month. While you will not see a dramatic drop in your loan balance each month using this method, the extra payment you make will be applied to your loan principal which will save you money on interest. It is the ability to lower the amount of your interest charges that will inevitably allow you to pay off your loan early.

A Final Thought

While paying off your mortgage loan early is a great step towards financial freedom, it is important to consider any penalties that may be imposed as a result of an early payoff. Be sure to check with your mortgage lender to determine if this type of penalty applies to your specific loan. 

Speak to an agent to learn more about your mortgage loan. 

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