Tired of Monthly Payments? Here’s how to Pay Off Your Mortgage Sooner
Paying a mortgage is always a pain, but we all know that they exist because sometimes they’re simply needed. Nevertheless, paying a mortgage for years and years is something that everybody wants to avoid, but it seems impossible when you’re already compromised in a 30-years payment contract. Luckily for us, there’re some easy ways we can shorten the time of mortgage payments and now, here at the TeamSpisak, we’ll tell you about it
Increment the sum of your monthly payments
This sounds ridiculously obvious at the beginning and probably the answer is “if I could, I would” but we’re not talking about increasing largely every payment, but at the contrary, try adding a very small sum of extra money to your regular payments so it won’t actually notice and keep doing this until you’ll find out that you are managing to pay your mortgage really quick.
It’s a good idea to add like 50-100$ bucks extra if possible but if not, add as much as you can and normalize it as the regular quote, this will dramatically decrease the time of your mortgage payments.
Make an extra payment
But maybe adding an extra every month is really hard for you, so it’s not actually a way that helps. Then, another good idea is to find one month in the year where you get an extra money and the make, also, an extra payment. This would result in 13 payments instead of the common 12 payments per year. This way, you’ll only have to pay more money once in a year and you can choose when, and you also will be deducting time of mortgage payment.
If you already paid a percentage of your mortgage, let’s say 35% then a good idea is to refinance for less time mortgage. This way you’ll save in interests and maybe you’ll end paying almost the same.
If on the contrary, your mortgage is still at the first payments, you can get a loan with lower payments and interests and use that money to reduce the mortgage, at the end you will pay almost the same quotes but for a really shorter time and save in interests.
Redirect unexpected money
Sometimes we have an extra bonus at work, or some heritage, gift etc that includes some money we weren’t counting on. It’s very common that we spend that money going on a dinner or buying that thing we wanted so bad, and that’s ok, but if you’re thinking on reducing the time of your mortgage, an excellent way to do it is using all that extra money for actually paying the mortgage. If you do it every time, it will be a significant input.
Make sure in any of this cases that your lender is actually sending that money to pay your mortgage, to do this you can send all the checks separately or even call the company that you send your payment to, to check if the lender is being responsible with your payments.