Bought Your Dream Home? Here’s How to Pay Off Your Mortgage Faster
Everyone fantasizes about finally buying their dream home. Sometimes there’s a family and several pets, and other times it’s just an awesome bachelor pad.
Regardless, many people looking for their dream home find out how much money they can get approved for and find a house to match. Unfortunately, this leaves quite a hefty mortgage bill every month. When times are good, it’s no problem.
But you don’t want to be paying off your mortgage for another 30 years, do you?
Paying off a loan over 30 years could cost you several hundred thousand dollars. Therefore, it’s important to learn how to pay off your mortgage faster. Don’t give the bank an extra $150,000!
Keep reading as we show you how.
How to Pay Off Your Mortgage Faster
Paying off your mortgage faster requires a little forethought. If it’s too late for forethought, you’re still okay! It will take a little more work for you, but you can do it.
All you need is some discipline, consistency, and practice managing money.
Don’t Buy Too Big
First and most importantly, if you haven’t already bought your dream home, consider buying under what you were approved for. You may have to compromise a little, but it’s either that or becoming a slave to the bank for 30 years.
If you want to know how to pay off your mortgage faster, start by buying a smaller or older home. Over time, you can renovate and update however you want.
Work with a mortgage lender who understands your needs and will help you find the perfect mortgage for you.
If You Bought Too Big, Fix It
If you’re already in a home with a mortgage payment you have trouble paying, don’t worry, it’s not too late. It will take more work on your end, but you can still pay it off early or get out of it.
First, you can sell your home and downsize. If you feel too strongly tied to your current home, then you’ll need to find another way. If your budget is super tight, you can start working extra hours or cutting back in other expenses.
Pay Off Other Debts
Paying off all of your other debt is a great tip for how to pay off your mortgage early.
Start by using any extra money to pay off the smallest debt. Then, use the money that was going toward that payment to start paying off the next smallest debt. Continue this process until you have several hundred extra dollars a month to throw at your mortgage.
Save Everywhere You Can
Finally, if you want to know how to pay off your mortgage early, start cutting out unnecessary expenses everywhere else in your budget.
Most people have money going out every month for things they don’t even use. Start making sacrifices.
Here are some quick ways to save money:
- Downsize to a less expensive car
- Cut out cable (streaming services are much cheaper)
- Cancel random subscriptions and memberships
- Stop eating out
- Make your coffee at home
- Don’t go out drinking
Imagine not having a mortgage payment anymore.
Don’t waste any more money paying hundreds of dollars on interest each month. Start using these tips on how to pay off your mortgage faster today!