Just because you’re stuck with a thirty-year mortgage, doesn’t mean you have to spend thirty years paying it off.
Thirty years is a long time. No one wants to spend longer making mortgage payments than they are obligated to. The most obvious way to pay a mortgage faster is by taking a fifteen-year mortgage instead of the typical thirty. But not a lot of people can afford to make payments that are double their mortgage, so is there another way? Yes! Here are a few ways you can pay off your mortgage in a faster time.
Biweekly Payments
Biweekly payments are the easiest way to shave years off your mortgage without having to make a radical change to your budget. This is because by doing biweekly payments, you are making twenty-six payments which is equivalent to 13 months of payments, instead of the regular twelve months worth of payments you would get with normal payments.
Increase Your Monthly Payment
The biweekly payment amount is a good method, but what if you have extra cash you can afford to spend on your mortgage? Well, you can simply add that amount to your monthly payment and you easily shave off even more years off your mortgage.
Take note, that once you reach over $400 a month, you may be better off going with the 15-year mortgage since they are about 0.5 percent lower than the thirty-year mortgage rates.
One-Time Loan Payments
Shaving any amount of time is better than nothing! If biweekly payments or increasing your monthly payment isn’t an option, that’s okay! If you receive a bonus at work or any extra cash, you can always attach that to your payment. It may not be years off your mortgage, but knowing you’ve made your final payment sooner than anticipated is a great feeling.
Homeownership is a very important step in anyone’s life, but you should not dive in head-first without doing research–it may save you thousands of dollars. For all of your home loan needs throughout Solana Beach and San Diego County, as well as all of California, contact Elvin Wesley at Ranch & Coast Mortgage Group Inc. We have the experience needed to make sure you get the right mortgage.
