Pay off your home quicker, and watch your investment grow.
Paying off your mortgage can feel a lot like dumping money into a black hole. It feels like you’re losing your hard-earned cash in an endless abyss and never really getting to enjoy the investment. But it’s not entirely like a black hole; one day your mortgage will be off and the return on your investment will be a sweet reward.
The sooner you pay it off, the sooner you’ll be able to enjoy it. One extra payment a year or every two years will shave years off your interest payment. Use these tips to make an extra mortgage payment, and pay off your mortgage sooner than you expected!
If you were to purchase a house today on a 30-year payment schedule, you won’t finish paying it off until 2046. If you were to begin paying a $150,000 mortgage with a 4 percent interest rate, adding an additional payment of $712 will end your mortgage four years earlier than expected.
You have your motivation, now you need the method.
- Setting a reasonable goal. High-minded ambitions are known to get overwhelming pretty quickly and most go undone. Start by creating a savings plan, and put in a set amount each month. If you feel you can increase that amount, put more in until you find that sweet spot.
- Extra savings. There’s always a reason that you may want to divert some of that cash to something else. Maybe that new smartphone, or that cute ugly sweater for your cats. Avoid these temptations and automate your extra savings into your mortgage payment.
Just because you sign for a 30-year plan doesn’t mean you have to spend 30 years paying it off. With more help on how to pay off your mortgage, contact Andraya Coulter in Walnut Creek, serving California and Texas, for all of your home loan needs!