Did you know that just 34 percent of people in the United States own their homes outright? That means the vast majority are plugging away at a home mortgage each month. Sound familiar?
But there are ways to pay off your home early and get that “mortgage monkey” off your back!
Quick note: Before you begin, contact your lender to ensure there are no penalties for prepayment. Regulations vary by state.
- Bi-weekly payment plan: Pay half your monthly payment every two weeks. Some months will have an additional payment, which could add up to an extra full payment per year.
- Matching principal payment plan: Add your initial principal payment to every monthly payment that follows. This shaves years off your mortgage and saves interest.
- Make an extra full payment per quarter: In some cases, this can take up to 11 years off your mortgage.
- Cash influx: Put unexpected cash – like an inheritance, birthday gift, or tax refund – toward your principal balance.
- Refinance to a 15-year loan: This is helpful if you’re on track to pay it off early, rates are low, and you’re early in the mortgage. Consult your mortgage professional if you’re uncertain.
- Divide your mortgage payment by 12: Add this amount to your monthly payment and make one extra payment per year.
- Do what you can: Make small budget cuts and save money to contribute toward your principal.
I have outstanding relationships with a number of professionals in the Smith Mountain Lake mortgage lending industry. Call, text or email me and I’ll be happy to put you in touch with one.
Deb
P.S. If you’d like additional information on buying and selling at Smith Mountain Lake, please contact me. I’m here to help!
