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How To Pay Off Your Mortgage Early: Tips And Hacks

Are you interested in learning how to pay off your mortgage early? Have you ever dreamt of what life would be like without a mortgage? What would you do without your monthly mortgage payment?

If you are really interested in learning how to pay off your mortgage early then you have to read this post. In this post, you will learn all the necessary tips and hacks involved in paying of your mortgage as early as possible.

Pay off your mortgage early with these personal finance tips. Yes, it’s possible to live a debt-free life and achieve Financial Independence by paying off your mortgage in the next 5 years. If you are seeking to retire early, these money hacks may be your ticket. Paying your mortgage weekly and making extra payments to your principle can save you hundreds of thousands of dollars in your interest and pay your mortgage off years ahead of schedule.

Some Of The Online Mortgage Lenders

Below are some of the Online Mortgage Lenders, Clicking on any of them will take you to another page where you will learn how to access your account and learn how to pay pay your mortgage online.

What Are The Benefits Of Paying Off Your Mortgage Early?

To get you even more excited, here are some of the benefits of a paid-off house:

  • You will no longer have a mortgage! Okay, I know this is obvious, but it is a big deal. Considering that your home is usually your biggest budget expense, that’s a lot of money you won’t need to spend each month.
  • You can free up cash flow to put towards other things. This means that you can have more money to put towards retirement, vacations, and so on.
  • You’ll have more freedom because you won’t have a huge monthly payment hanging over your head.

If you are currently paying $1,000 each month towards your mortgage, getting rid of your mortgage payment means every year you could potentially max out your IRA, go on a vacation, and still put some money in savings.

Can you imagine how freeing that would be?

According to Yahoo Finance, 38% of owner-occupied households in the U.S. are paid off. And, mortgage-free living is more common for homeowners who make less than $25,000 a year. 

Those two statistics actually really surprised me, and it’s not quite clear why that’s the case. But, the point is that you can learn how to pay off your mortgage early, and a surprising number of people have done it.

I know it seems impossible, and most of us grew up with the idea that a mortgage is something you always have. However, that’s not the case at all.

Learning how to pay off your mortgage early and faster is something you can do. Even shaving five years off your mortgage can save you thousands of dollars and give you five extra years without that big payment hanging over your head.

Since you are interested in learning how to pay off your mortgage early, I have some great tips to share with you today.

How To Pay Off Your Mortgage Early

If you want to learn how to pay off your mortgage early, there are many ways to do it. You can try one or many of the tips below.

How To Pay Off Your Mortgage Early: Tips And Hacks

1: Put your tax refunds towards your Mortgage.

If you get a tax refund each year, then you may want to think about putting it towards your mortgage.

This can apply to any large amount of money that you come across, as it can put a nice little dent in your mortgage payoff progress. 

2: Make biweekly Payments.

Because there are 52 weeks in a year, making biweekly mortgage payments means you are making 26 payments, and that equals one extra mortgage payment every year.

Earlier I explained how to pay off your mortgage early with one extra payment each year — it can save you a couple of years on your mortgage payoff.

However, check with your lender to see if they are set up to take biweekly payments. Some lenders charge a processing fee, and it might not be worth the savings.

3: Refinance your Mortgage.

Mortgage interest rates are near historic lows right now, and you may be able to lower your monthly payment or get a shorter loan term if you refinance.

Now, before you refinance, you will want to see if the cost of refinancing is worth what you’ll be saving over time. It costs, on average, 2% to 3% of the loan amount to refinance.

4: Get a Roommate.

We often had roommates when we owned a house. This was a way for us to save more money.

And, this can be a great way to put more money towards your mortgage.

Some homeowners will rent out multiple rooms in their home, basically covering their entire monthly mortgage payment.

Others may choose to only rent one bedroom and use that chunk of cash towards their mortgage payment.

5: Round up your mortgage payments.

Rounding up is an easy way to think about paying extra towards your mortgage, and even rounding up by a small amount can have a surprising effect on your long-term payoff.

Here’s an example: you have a $200,000 mortgage with an interest rate of 4.5%, and your monthly payments are currently $1,013.00.

Rounding up to $1,100 a month — an extra $87 per month — can shorten your loan by 4 years and 6 months. It can also save you nearly $30,000 on your total payoff!

Those numbers are if you have a brand new 30-year mortgage, but you get the point. If you want to learn how to pay off your mortgage early, a little extra money can make a big difference if you start early.

Conclusion

There are many things to think about when it comes to whether or not you should pay off your mortgage early. For some people, it may be a no-brainer to eliminate their mortgage debt.

For others, they may want to invest their cash in other ways. I always recommend making a pros and cons list to see what is best for you.

Do you want to learn how to pay off your mortgage early? Why or why not? If you’ve paid off your mortgage early, what do you think is the most brilliant way to pay off your mortgage? Lets hear from you in the comment section below.

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