Do you dream of living in a home without having to pay those pesky mortgage payments every month? What would you do with all that extra cash? Do you think living mortgage free is even a possibility for you – or do you think that it is too far out of reach?
The good news is that it is possible to pay off your mortgage more quickly and in this blog, we are going to discuss three strategies can you can use to make it happen.
1. Make bi-weekly payments instead of monthly payments.
Although it won’t feel like a big hit to your budget, making 26 bi-weekly half payments over the course of the year (instead of 12 full payments) will equate to one extra payment every year. Over the lifetime of your mortgage, this can really start to add up and it will help you pay off your mortgage more quickly.
2. Pay extra.
Most mortgage contracts allow you to pay up to a certain amount extra on the anniversary of your mortgage. Over the course of the year, set some money aside to make an anniversary payment. The more you can take advantage of this option, the more quickly you will be able to pay off your mortgage. Remember, this money all goes straight to the principle, so not only will you be paying off your home faster, but you’ll be lowering the amount you’ll have to pay in interest as well.
3. Shop around before you renew.
One of the biggest mistakes that people make with their mortgages is not shopping around at renewal time. When your mortgage is due for renewal, you will typically get a renewal offer from your current lender – but rarely is this their best rate.
By paying a visit to your mortgage broker a few months before your renewal date – they can shop around or negotiate with your current lender to get you a better rate. Because the less you pay in interest, the more quickly you will be able to pay off your mortgage.
Paying off your mortgage early is possible, but it takes discipline. Following these strategies however will enable you to pay off your mortgage more quickly.
For more money saving mortgage strategies, contact AKAL Mortgages today to speak with one of our brokers
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