3 Tips to Pay Off Your Mortgage EarlySep 26, 2021 04:02PM ● By Dawn Van Nieuwenhuyzen, Plains Commerce Bank Senior Mortgage Banker
By: Dawn Van Nieuwenhuyzen, Plains Commerce Bank Senior Mortgage Banker
Paying off a mortgage can be daunting. Fortunately, there are ways to pay off your mortgage early. Getting it taken care of can be a huge relief! If you’re ready to make moves toward to paying off your mortgage early, I have a few tips to make that happen!
Biweekly Payments: Set up mortgage payments every other week. This adds up to 26 payments per year. Over time, this can cut down your 30-year mortgage loan to 23 years! This can be especially effective if you receive biweekly paychecks, as you can set the payments for the same time as when you receive your paychecks. You’ll know that you get paid and take care of mortgage expenses all at once, leaving you to enjoy the rest of your month!
Bundle Payments: Make lump sum payments to cut down the amount you owe. Windfalls: a gift from grandma, lottery winnings, or tax refund checks can be used to help pay your loan balance down ahead of schedule.
Bigger Payments: Add a bit extra to each payment that you make. This amount can vary – just do it! You can snowball adding extra to your payment starting small like $10, and then going to $20, $30, $50. Small increases will not break the budget but will still help in paying down interest. If you increase every loan payment even slightly, you’ll do yourself a favor by reducing the principal amount.
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Dawn Van Nieuwenhuyzen – Senior Mortgage Banker – NMLS #21096