Owning a home is a little slice of the American Dream. 🏘️ The attached mortgage? Not so dreamy. Especially in this cray cray econo-may. 🥴
Speaking of dreams, if you’re dreaming of becoming debt free, paying off your mortgage early might be easier than you think. 🙇We’ve rounded up some simple tips to help you smash those goals.
Here’s Five Fast Facts on how to pay your mortgage off early:
- 💰 A Little Somethin’ Extra - Instead of cashing in your yearly bonus check to go on vacation, why not put it towards that mortgage? If you get in the habit of using extra and unexpected chunks of change to pay down your mortgage debt, you’ll be free in no time! After that, use your extra cash to do whatever your heart desires.
- 🍞 Baker’s Dozen - Paying just one extra mortgage payment a year can put a big dent in your debt over the long haul. If you don’t have enough to pay the extra payment all at once, set aside 1/12 of the payment each month and chip away at it all year!
- 💵 Just a Buck - If you’re on a tight budget now but plan on increasing your income over time, try the dollar-a-month plan. It works by simply increasing your mortgage payment by a dollar each month. A dollar may not seem like a lot, but it adds up. For example, you can pay off a 30-year, $900-per-month mortgage at a 6% fixed interest rate on a loan of $150,000, eight years sooner.
- 🧮 A New Deal - Refinancing, or taking out a new mortgage to pay off an existing one, could also help you save…as long as the interest rate is lower on the new one. With a better interest rate, you could also choose a shorter borrowing term and pay things off sooner without much of a change in your monthly payment.
- ☝️ Roundabout - Want to keep things simple? Just round up! If your mortgage is $950 a month, pay $1,000 instead. Remember, a little bit goes a long way. Paying even a little extra gets you closer to that mortgage-free life.
🔥Bottom line: These tips have a little something for every kind of paycheck. The less debt you’re lugging around, the better! If you want another mortgage-busting tip, we just wrote a great article on a technique that’s based on making bi-weekly payments. Head here to get the scoop!
Is your house paid off?
Let us know by connecting with us on Facebook and Instagram! Also, remember to share this newsletter with your friends & coworkers!
Btw, If you’ve read this far and haven’t yet signed up for the weekly Paycheckology newsletter, CLICK HERE!
