Being able to make just one extra payment per year can shave years off the term of your mortgage.
Paying off your mortgage can feel like throwing money into a black hole–never to see it again. But eventually, that black hole (or mortgage) will be paid off and the return on the investment will be a sweet reward. That said, the less time you spend paying your mortgage, the sooner you’ll be able to fully enjoy living in your home. One extra payment a year can shave years off of your mortgage payments. Here’s how you can do it.
- Review your current budget. Before you go off paying tens of thousands of dollars, you need to make sure you can actually afford to do so. Understanding your current financial status is important because it gives you knowledge of where your money is going and how much you can allocate towards savings and extra mortgage payments.
- Set a reasonable goal. Ambitions tend to get way too big, way too fast. It’s important that you keep on track with your saving plan, start by setting a goal you know you can achieve. Start small and increase incrementally until you hit that sweet spot.
- Automate your savings. It’s easy to divert your savings into your checking account, but by automating your savings, you won’t be tempted to do so. You can use your bank to automatically put a portion of your earnings straight into your savings plan to make that extra mortgage payment.
Paying your mortgage off as quickly as possible releases you of the grip that the bank has over your house and essentially your entire life, because after your last payment, you will owe them nothing. For all of your home buying needs throughout the Solana Beach, California area, contact the professionals at Ranch & Coast Mortgage Group Inc.
