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Paying off your mortgage faster can help you save a lot of money on interest over the life of the loan and even enable you to own your home outright sooner. Here are some tips to help you pay off your mortgage faster:
- Make extra payments: One of the most effective ways to pay off your mortgage faster is to make extra payments whenever possible. This could mean making one extra payment per year, making more frequent payments, or even making larger lump-sum payments whenever you have extra cash available.
- Refinance your mortgage: Refinancing your mortgage can help you lower your interest rate and reduce your monthly payments. You can also choose to refinance to a shorter term, such as a 15-year mortgage, which will help you pay off your mortgage faster.
- Make biweekly payments: Rather than making one monthly payment, consider making biweekly payments instead. By doing this, you will end up making 26 half-payments each year, which is equivalent to 13 full payments. This will help you pay off your mortgage faster and save on interest.
- Round up your payments: Rounding up your mortgage payments can help you pay off your mortgage faster without even realizing it. For example, if your monthly mortgage payment is $1,200, rounding up to $1,300 will help you pay off your mortgage faster and save money on interest over time.
- Make a lump sum payment: If you come into some extra money, consider making a lump sum payment towards your mortgage. This can significantly reduce the amount of interest you pay over the life of the loan and help you pay off your mortgage faster.
- Consider downsizing: If you’re serious about paying off your mortgage faster, you could consider downsizing to a smaller home or moving to a lower-cost area. This will allow you to put more money towards your mortgage payments and pay off your mortgage faster.
Remember, it’s important to check with your lender to make sure there are no prepayment penalties before making extra payments toward your mortgage.
Confused about where to start? Reach out to your REALTOR® to connect you with a Mortgage Broker. Don’t have a REALTOR® yet? Reach out to us! We always have an agent on duty to help answer your questions — whether it be about the value of your home, or where to find a reliable lender.
