The following article is a guest post.
Once you’ve moved into your dream home and the initial excitement has worn off, the time has come to consider your monthly mortgage. One way to cope with the problem is saving money on everyday expenses by using Discountrue coupons for Kohl’s or other popular stores. However, it’s not the only thing you need to know, so if you want to get done with it as soon as possible, you’ll need to learn more about other methods of doing so and combine the efforts.
Fortunately, there are numerous ways to pay your mortgage off faster, so be sure to read on and learn more about how to eliminate this expense from your monthly responsibilities as quickly as you can!
1. Pay 1/12th Extra Each Month
This is one of the simplest methods for paying off a mortgage more quickly. All you need to do is take your principal and interest from each month, divide that number by 12 and add it to your monthly payment. As a result, you will be making 13 payments each year, instead of 12, and the financial sacrifice is minimal.
Before applying this method, contact the company that is servicing your mortgage and make sure that these payments are being applied to the loan balance in the proper manner.
If you’d like to switch to a mortgage with a shorter term, refinancing is a viable option. For many homeowners, the prospect of spending 30 years paying off a mortgage is too much to bear and switching to a 15 year mortgage term is far more palatable over the long haul.
A 15 year mortgage typically comes with a much lower interest rate than a 30 year term, but be forewarned – you will need to qualify first. A credit check and a home appraisal are necessary aspects of the process.
3. Make One Extra Payment Each Year
There are two different ways to go about this task. Homeowners can either save their money throughout the year and make two payments instead of one at the end. On the other hand, those who are paid on a biweekly basis have the ability to set aside a piece of those “extra” checks that arrive during certain months. Making 13 payments every year will slice a significant amount of time off your schedule, allowing you to own your home outright much sooner.
4. Put “Found Money” Towards Your Mortgage
We have an alarming tendency to take found money and blow it on items that do not enrich our lives in any meaningful way. But when you get a bonus at your job, a hefty tax return or any other unexpected windfall, your best bet is to put it towards your mortgage.
This method gives you the chance to pay extra only when you’re flush with additional funds and cut down on your interest by lowering the principal. However, it is important to make sure that you are not neglecting any other pertinent needs before embracing this strategy.