If you’re a homeowner, you’re likely familiar with the financial burden of a mortgage. Over the years, you may have wondered if there were any ways to pay off your mortgage sooner. Although it may feel daunting, there are several options to help you tackle your mortgage debt.
One way to pay off your mortgage sooner is to make bi-weekly payments. Instead of making one monthly payment, bi-weekly payments mean you’d make 26 payments over the course of a year. This adds up to 13 full monthly payments, which can help you pay off your mortgage faster.
Another option is to make a lump sum payment. If you receive a windfall of some sort, such as a bonus or inheritance, you can put this towards your mortgage. This can help reduce the amount of interest you pay over the life of the loan. Be sure to check with your lender to see if there is a penalty for making a lump sum payment.
Another way to pay off your mortgage faster is to refinance to a shorter loan term. Refinancing to a 15-year loan, for example, will reduce the amount of interest you’ll pay over the life of the loan. However, if you choose to refinance, be sure to factor in any closing costs associated with the loan.
Finally, you may also consider increasing the amount of your monthly payments. You can do this by making an extra payment each year or by adding a small amount each month to your payment. This will help you reduce the amount of interest you pay as well as help you pay off your mortgage sooner.
Paying off your mortgage sooner can be a challenge, but it’s possible. Whether you choose to refinance, make bi-weekly payments, increase your monthly payments, or make a lump sum payment, exploring different ways to pay off your mortgage sooner can make a big difference.