Paying off your mortgage early is a very satisfying experience. However hard it may seem, you can pay off your mortgage loan early. Accomplishing this task just takes discipline and dedication. Nobody wants to live under the บ้านมือสอง กรุงเทพ burden of a long-term debt and the peace of mind that comes with fully owning your home is something to look forward to. Many experts out there offer a lot of mortgage advice on how to pay off your mortgage early but the truth is that this depends on an individual.
You can adopt many strategies for paying off your mortgage early, but others are easier to adapt and follow through than others. Below are some three strategies and tips on how you can achieve this seemingly insurmountable task. You just need to compare and find out what mortgage advice is most suited to you and your lifestyle.
• Add a little something to the amount you pay every month. Adding a little cash to the amount you usually pay towards clearing your mortgage loan can greatly shorten the length of your loan. This might seem like magic but here is where the power of compound interest really comes into play. Because interest you pay on your mortgage is calculated based on the amount you owe, paying a little more each month reduces the amount you pay interest on and ultimately the total interest you have to pay. Thus you end up repaying your loan earlier.
You can easily do this by paying a round figure every month. If you have to pay $542 a month, you can just pay a round figure of $550. The extra $8 every month will go a long way in reducing your interest and save you some payments on your loan. Confirm with your lending institution mortgage advice department that you are allowed to pay more per month than what is stipulated in the contract. Make sure the extra amount you pay is not put aside as prepayment for the next month payment.
• Get a long term loan and pay it as if you were paying for a short term one. Many people take a 15 year mortgage. If you take such a loan and then you pay if off as if you had taken a 10 year loan, then you end up paying more per month which means that you automatically reduce your interest and the life of your loan.
• Pay on a weekly basis. There are more weeks in a year than there are months. A month is usually considered to be 4 weeks but actually it contains a few extra days more than the 4 weeks. Hence, a full year has 52 weeks instead of the 48 weeks you would have expected by taking into account that one month is 4 weeks. This translates to one month extra. By making payments every week, you end up paying for 13 months instead of 12 months by the time the year ends.
This extra payment annually will chop off a significant amount of the total lifetime of your loan. This obviously means that you will finish paying for your mortgage loan earlier than if you would have paid on a monthly basis.
Check with your bank mortgage advice team to see if they do accept biweekly payments. Most do but charge a little amount you for it. But even if they do, you will still be better off paying weekly.
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