Getting the mortgage monkey off your back

Did you know that only 34% of Americans own their homes free and clear? Most homeowners have a mortgage they’re chipping away at. If you have a mortgage, you may want to consider paying it off early. Here are some simple strategies you can implement in order to get that mortgage off your back sooner, rather than later!

Tips for paying off your mortgage early

Once you get the kids raised and the mortgage paid off and accomplish what you wanted to do in life, there’s a great feeling of: ‘Hey, I’m free as a bird.’

Dick Van Dyke

1. Bi-weekly payment plan

Ask your lender if this is option is possible for you. Pay half your monthly payment every two weeks. Some months will have an additional payment, this could add up to an extra full payment per year, and could take 6-7 years off of your loan.

2. Make an extra full payment per quarter

In some cases, this can take up to 11 years off the life of your mortgage. So if you’re able, this is a fantastic option.

3. Refinance to a 15-year loan

This is helpful if you’re on track to pay your loan off early, rates are low, and you’re early in the mortgage. This could also save you thousands of dollars in interest. Consult your mortgage professional if you’re not sure.

4. Divide your mortgage payment by 12

Add this amount to your monthly payment. This will equal one extra payment per year, and get you another step ahead on paying off your loan.

5. Cash influx

Put unexpected cash – like an inheritance, birthday gift, tax refund, etc. – toward your principal balance. If you don’t have extra cash to put toward your mortgage, this is a great alternative option.

6. Do what you can

Make small budget cuts and save money to contribute toward your principal. Everyone’s situation is different, so it’s important to weigh your options and make the decision that’s best for you.

If you have more questions about your mortgage or refinancing options, visit our lenders page. We appreciate our local Kentucky mortgage pros, and know they can help you out with all of your questions.

Phone: Ethan Burton ~ 606-282-3821 | Email: ethan@blacktierealestate.net

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