If your goal is to payoff your mortgage loan early then here are some quick tips to make your process easier
Keep yourself Motivated:
You need to be goal oriented to keep achieve something.Start by analyzing your daily habits and find ways to save cash. As you will make progress, you will become more energetic for the final outcome.
Cut your Mortgage Life in Half:
If you are someone with 30 year mortgage then try switching from a 30 year mortgage to 15 year mortgage. This will tie you with you an extra payment per month. However, you will be saving a lot on overall interest.
Since your goals are forward thinking. So you should think about the hundreds of thousands of dollars you will save over the life of the loan.
Bi-weekly Payment will cut Time:
It is one of the easiest tips to cut your mortgage time. You need to get in touch with your bank and ask them to setup biweekly payments. Also ask them to make these payments automatic.
With this kind of setup you will end up paying every other week instead of every month.
How will it help you make payoff your mortgage loan early? You will be surprised to find out that you have done 1 extra payment per year.
Pay some extra each Month:
Analyze your budget to determine from where you can squeeze cash for some extra payment each month. Don’t get too hard on yourself while taking such an undertaking. Be reasonable. Remember nothing is more important than what you can pay comfortably.
You can start by making the commitment and then analyzing your progress to determine how hard it is. If it is taking a toll on your overall lifestyle then you can always cancel after couple of months.
Pay some extra each Year:
After coming up with a monthly goal for extra principle payment, its time to set a yearly goal. Inheritance, taxes and gifts i.e any unexpected income can come handy in paying one extra monthly mortgage payment at the end of the year.
Make use of your Tax Refund:
if you are getting a tax refund then you could use it as a principle payment for your mortgage. Don’t find something else “important” to make use of this tax refund.
Keep Checks and Balances:
You need to keep check and balances on yourself in order to payoff your mortgage loan early. Make a checklist of how you can increase revenue and control your budget. This will keep you on track and remind you of your goals.
Start from something simple and then move towards longer range goals. You can use an online tracker, mobile app or any form of checklist to keep track of everything. Also make a habit to logging into your Bank’s website to fetch details regarding your account status.
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