4 WAYS TO PAY OFF YOUR MORTGAGE FASTER
The average home loan is built on a 30-year term, but that doesn’t mean you have to wait three decades to be mortgage debt-free. Here are a few methods to boost your home equity and pay off your mortgage ahead of schedule:
Regularly paying more than what you owe is a surefire way to pay off your loan faster. Round up your monthly payments as much as you can and you’ll chip away at the principal balance. Every bit you pay towards your principal is less you’ll be paying in interest.
MAKE AN EXTRA PRINCIPAL PAYMENT
Wondering what to do with that tax refund? Consider applying it to your mortgage’s principal to pay down the balance. Make just one extra payment annually and you’ll shave years off of your mortgage.
MAKE BI-WEEKLY PAYMENTS
If you can, take advantage of the fact that there are 52 weeks in the year with bi-weekly half payments. At the end of the year, you’ll have made what equates to 13 months of full payments. Not all loan servicers offer bi-weekly repayment plans, however. Before signing on the dotted line, ask your PERL mortgage adviser if your servicer offers this option.
Of course, refinancing at a lower rate will save you money on interest. But shortening your mortgage’s term from a 30-year to a 10-, or 15-, or 20-year offers extra savings. A shorter term increases your monthly payment, but you’ll save substantially on interest over the life of the loan. Plus, you’ll be mortgage debt-free faster.
Contact your PERL mortgage adviser to find out if your current repayment plan is keeping up with your financial goals.