Want to pay off your mortgage faster? But don’t know how here are six tips to help you pay your mortgage off faster and it could save you thousands.
You can easily become complacent and go with the flow with whatever terms and conditions your bank has put you on. You can have a look and also do a bit of research to see what interest rates other banks are offering. You will be shocked on how much money you could potentially save. All you have to do is make sure if you do decide to refinance to keep your loan term the same and to keep your mortgage repayments the same.
INCREASE YOUR MORTGAGE REPAYMENT
If you can pay a little extra each month towards your mortgage, you could save a lot more money in interest charges and pay off your home faster. Make sure you won’t incur a prepayment penalty charge as some lenders have penalty charges in the contract, this is because they do not like you to pay off your loan before its actual due date.
REDUCE YOUR EXPENSES
Try to spend only what you need and all the extra money you save you can put it towards your mortgage, as that can save you a large chunk of money instead of paying all the extra interest charges. Even if it’s just 20 or 50 here and there a month every little bit helps.
AUTOMATE YOUR MORTGAGE PAYMENTS
Setting up an automatic bi-weekly payments is a great option as it’s a great way to manage your mortgage. The logic behind it is that instead of making twice a month or 24 times a year, on a bi-weekly schedule you make 26 payments. That is two extra payments each year!
RENT OUT PARTS OF YOUR HOME
If your have a spare room or a extra parking space on your drive, you can rent out these parts of your home to other people and save that money. Once you have saved a lump sum pay it towards your mortgage and that could save you a lot in interest charges.
SWITCH TO CASH-BACK CREDIT CARDS
There is a way to use credit cards to your advantage and learn how to pay off your mortgage faster. Credit card companies encourage usage by paying you back a percentage of the amount spent. It’s a competitive market, so you can find many companies offering great cash-back rewards. If you have great credit you can achieve up to 5% cash back in bonus categories and 1% cash back elsewhere. Cash back credit cards are most beneficial to consumers who pay their credit card bills off every month. Instead of writing multiple checks, put that money aside and use a cash back credit card instead to pay your monthly bills. Use the cash you set aside to pay off your full credit card balance every month, while reaping the rewards and benefits of earning the extra income on money actually spent. Using the profit will help you pay off the mortgage faster.