How To Save Thousands Of Dollars Off Your Mortgage!
The faster you pay down the principal amount of your mortgage, the more you can reduce those pesky interest costs. Take a look at your most recent mortgage statement to see exactly the amount of interest you have been paying on your mortgage these past few years.
Want to change that amount starting today? These are the simple and profound changes that you can implement today to get you mortgage free sooner!
- Want to shorten the total time needed to pay off your mortgage? You can, by shortening your amortization period. Instead of your current 25 or 30 year amortization period, shorten it to 15 or 20. Doing so will increase your payment amount but you will be mortgage free sooner and will incur less interest during the duration of the mortgage. Something to think about.
- Are you currently making monthly payments? Switch and increase your payment frequency to a weekly or bi-weekly payment schedule. Trust me, you won’t feel this and you will make an extra month’s payment every year.
- Increase your payments permanently or temporarily. Did you know some banks or lending institutions will let you increase your regular mortgage payment by 25-50% sometimes even 100! These extra payments as you guessed go directly towards your mortgage principal.
- Lump sum payments: Not everyone can do this but it’s nice to have the option! Did you come into a cash bonus lately or are you expecting an income tax refund? Think about putting a portion of this or even all of it as a lump sum towards your mortgage. As long as you have the prepay option you can pay up to 15-20% of your principal mortgage each year.
- Change from a fixed interest rate mortgage to a variable interest rate mortgage. Keep your mortgage payments the same but switch to a variable interest rate mortgage. This option offers you today’s lower rates and allows you to pay off your mortgage sooner by applying more of the payment towards the principal. Think about it, you haven’t changed your current payment amount but you are paying off your mortgage sooner. Now that’s a win-win!
Try one of these options today and you’ll feel good about making some positive changes towards paying down your mortgage. Next year you could try another option and before you know it, you are practically mortgage free and possibly looking to invest in a bigger home?
Interested in applying these options but want to learn more? Drop me a line and I’ll put you in touch with some fabulous mortgage brokers/lenders who will discuss your options in more detail and help make things happen for you today!