1783 Witt Way Dr, Spring Hill, TN 37174
5 beds, 4.5 baths, 4269 sq. ft.
4 suggestion to pay off your mortgage early
The idea of paying off your mortgage in full can seem impossible.
1. Switch to a biweekly payment
Instead of making one monthly payment, you can make a payment every two weeks. In other words, if your usual mortgage payment is $1000 a month, you would instead pay $500 every other week. There are 52 weeks in a year, a biweekly payment schedule will result in 13 full-sized payments a year instead of the normal 12. This will help you make an extra payment each year.
2. Make extra payments on your mortgage.
When you send in your monthly payment, most mortgage lenders will allow you to make an extra payment and mark it "principal only," . Paying down even a little bit of extra principal early on in the loan can save you quite a lot in interest charges. For example, if you have an odd payment amount such as $1025 per month, you can round it up to $1100 and dedicate the extra bit as a payment on the principal. Even if it's just an extra $50 or so a month, the principal payments will add up faster than you'd believe.
3. Refinance into a shorter-term loan.
Refinancing it as a 15-year loan will blast you through that mortgage a whole lot faster, and will probably get you a better interest rate as well. And thanks to the shorter time frame, you'll pay a lot less in interest -- so the payments on a 15-year loan are not double the payments of a 30-year loan; they're significantly less. For a lower payment, you could also consider a 20 year loan.
4. Put your extra money into your Mortgage.
Use a tax refund every year. If you use most, or all, of that money as an extra payment on your mortgage, you can make serious progress in getting your house paid off. Also consider if you get a bonus from work, a garage sale, or a gift from a relative. And if you get a raise, consider putting all the extra income into your mortgage.
Should you pay off your mortgage early?
If you have a low interest rate, it would be better to pay into investments than paying off your mortgage. Be sure to make comparisons to see which you would benefit from the best.