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.