One of the best financial moves a home owner can make is to attempt to pay off their house as soon as they can. There are many advantages to doing this. This may seem like a huge and almost impossible task but with some innovative planning it can be accomplished. It may mean initially making some sacrifices so the extra payments can be made, but by keeping sight on the final outcome of being mortgage free it makes it a little easier.
The first thing you can do is modify your payment plan. This means instead of paying by the month you are going to pay by the fortnight. This way you are now making 26 payments for the year, instead of 12 but the big difference is you are making one extra payment both on your principal and your interest. For one year it doesn’t seem like much but over multiple years this form or repayment method makes a big difference.
On occasion you may get to enjoy a lump sum payment from somewhere. This could be an inheritance, a tax return or perhaps some type of bonus. Instead of saving or investing this, think about putting it against your mortgage. Not only with this reduce your principal but it is going to lower the amount of interest that you are paying as well. Make sure that you check out any potential repercussions to doing this such as tax implications.
When you are seeking out your financing be sure to determine if there are any potential discounts that you may qualify for. In some cases individuals that hold certain occupations or are professionals in some field may be able afforded a discount by the lender.
Think about other places where you can save a few dollars that you can accumulate to put toward your mortgage. It may be that your bank accounts are costing you more than they should. By focusing on these and looking to see if there are any potential savings in regards to this, these few dollars will certainly add up.
It is always a good idea to stay in touch with your mortgage provider. On occasion you should get updated as to what is happening with your mortgage and if there are any better solutions available to you. There may be better deals or interest rates that your mortgage provider is offering that you may be able to take advantage of. You shouldn’t expect your mortgage provider to automatically tell you about these as you are an existing customer. Usually they are focusing on new customers when it comes to the current deals and specials. However, by asking about these it may raise an opportunity that you can take advantage of.
You may want to think about tightening your belt somewhat and cutting back on some of your other entertainment venues and using that money towards your mortgage. As mentioned this takes a certain amount of sacrifice, but for the many years of being debt free when it comes to your house mortgage, it may be well worth it.
Not only do you want to think about paying off your mortgage as quickly as possible you also want to give strong consideration to it when you are first arranging your mortgage when you are purchasing another home. Make sure that it is within your price range and is not placing an exceptional financial burden on you.