To some, paying off your mortgage early may seem like a myth. Like with most things, when considering paying off your mortgage sooner rather than later, every penny counts. On our blog today: tips to relieve stress and pay off your mortgage early! Before considering any of the tips below, always check with your mortgage officer to see which options are feasible for you.
Refinancing to a shorter term or better rate is a great method for some to expedite paying off their mortgage. Initially, the short term costs of refinancing may be pricey, but in the long run you may be able to pay off your mortgage up to ten years sooner than expected, all the while saving money on interest costs.
Another option which may not have you budgeting as much up front is to pay a little more each month. Even setting aside $20 a month can shave off years of payments and reduce the amount you’re spending on interest costs. This makes bringing the home-packed lunches to work worth it.
As some mortgage companies may have a prepayment penalty fee, making one extra mortgage payment at the end of each year may be a great option for reducing the longevity of your payments. As opposed to coming up with a lump sum at the end of each year, this can be done by setting aside a small amount each month. Talk to your loan officer today if you are considering one of these options of paying off your mortgage early!