Pay Your Mortgage Off Early with These 3 Tips
Do you have the dream of paying off your mortgage early? Believe it or not, it is possible to do if you plan well. In fact, thirty-four percent of homeowners in the U.S. no longer have a mortgage according to U.S. Census data. If you’re a Tampa bay property owner that wants to be among the percentage of homeowners that doesn’t have a monthly payment, then pay your mortgage off early with these three tips.
1.) Bi-weekly Payments: This tactic is a no brainer. There are fifty-two weeks in the year and twelve months. If you pay half your regular mortgage payment every two weeks, you’ll have made twenty-six half-payments, or thirteen full monthly payments by then end of the year. So you’re effectively making a full extra payment each year. Check if your bank will set up a biweekly mortgage payment plan and ask the bank to credit extra payments toward principal so you save more on interest expense.
2.) Creative Refinancing: There are a few ways you can refinance your home loan to help you pay off your mortgage early. You can refinance your mortgage to a lower rate but keep making the higher payment which helps shave years off your mortgage. Or you can refinance your mortgage to a shorter term which cuts the amount of interest you pay sooner.
3.) Give a Little More: You’d be surprised what a difference even paying just a little more will make on paying off your mortgage sooner. Even something as small as rounding your payments up can help. For example: Round a mortgage payment of $644 up to $650. A mere $6 more a month on a $200,000, 30-year loan can save you four payments at the end of the mortgage loan! Also, be sure to apply any extra money you pay towards paying off your mortgage to the principal balance, not just the next payment.
Paying off your mortgage early may seem like a stretch, but it is actually a perfectly obtainable goal if you stay focused and stick to a solid plan. If you’re looking to buy a home in Tampa Bay or if you need a reputable Tampa Bay property manager to maintain your home, please contact Simply Property Management – Paielli Realty, Inc. today. We provide a wide array of specialized property services to fit your real estate needs, and can help you manage your Tampa Bay property or find the home of your dreams. We keep it simple, not complex.
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