Paying off your mortgage can be difficult and it can be even harder for those who are first-time homeowners. The thought of paying off one’s mortgage early is sometimes only a dream or fantasy. What if you really were able to pay off your mortgage faster?
Here are 5 great ways to help you pay off your mortgage faster:
Round up your mortgage payments.
Every step counts. Every dollar counts. Every penny counts. If your monthly payment is $975.29, take a step further and round it out to $1,000. Those extra $24 and 71 cents go a long way. It will shorten the amount of time you have to pay off your mortgage.
Make a lump-sum payment.
Now is the time when Americans are receiving their tax refunds. It will be a smart idea to put some of that money towards your principal balance. You can make a large payment on your mortgage with any cash you have available. Use your inheritance money if you want, but find a way to pay a huge amount of money to put towards your home loan.
Refinance your mortgage to a lower interest rate.
If you refinance your mortgage, you can get a lower interest rate. Studies have indicated that borrowers who refinanced their home during the send quarter of 2012 lowered their mortgage rate by 1.5%. When you get a lower rate, you get lower monthly payments which makes it easier to pay off your mortgage faster.
Refinance your loan to shorten it’s time frame.
You can refinance your 30-year fixed-rate mortgage to a 20 or 15 year mortgage. By doing this, you can continue to keep your monthly payments relatively close to what you were paying before. You will build equity faster and save money in interest.
Change your Payment Schedule to make biweekly payments.
When you pay off half of your monthly payments every two weeks instead of just once, you are taking off almost 6 years off of a 30-year mortgage. You will be saving tens of thousands of dollars of your total mortgage. It will be worth the changing of your payment schedule.
You see? After reading these five financial tips, you know that you feel better about paying your mortgage at a much earlier time. It is possible. You can make your dream a reality. The home loan experts at Ace Mortgage Loan Corporation can assist you in paying off your mortgage faster.
Ace Mortgage Loan Corporation is located in Coral Springs, FL. Their mortgage services include that of home financing, refinancing your home, or obtaining a mortgage with a rate that fits your lifestyle. Our mortgage brokers are knowledgeable about FHA and HARP home loans, VA loans, and Fannie Mae & Freddie Mac. Don’t let time pass by and your debts to get higher, call Ace Mortgage Loan Corporation today!