by Rick Delgado
on Tuesday, June 30th, 2015 at 2:58pm.
Mortgages can make you feel like you're literally tied to your home. The stress, the payments, wouldn't it be nice if there was a way to pay off your mortgage faster? Looking to ease your mortgage worries? Here are five ways you can pay off your mortgage faster.
Opt for bi-weekly payments
Most mortgages payments are made monthly in one lump some. By opting for bi-weekly payments, you're breaking that lump some into two equal payments paid twice a month. It will save you money in interest and shorten the length of your mortgage than if you paid one monthly payment. For example if you have a 25-year mortgage for $300,000 at 3% fixed interest rate, switching from monthly to bi-monthly payments will save you $16,058.57 in interest alone!
Round up your mortgage payments
When it comes to paying off a mortgage, every penny counts. One trick mortgage savvy homeowners use is to round up their monthly payments. For example if your bi-monthly mortgage payments are $557, round them up to $600. While you may not notice a significant difference in your budget, you can shave years off of your mortgage.
Put your tax return towards your mortgage
Rather than spending your tax return every year, put your refund to good use by applying it to your mortgage. Want to maximize your tax return? Invest in RRSPs and invest the extra tax income into your home.
Save money on your mortgage with cheaper homeowner's insurance
One area that is overlooked by homeowners is their capcity to save on their homeowner's insurance. Often lenders will bundle your car and home insurance together resulting in lower premiums overall. If you use the added savings and put it towards your principle, you will pay your mortgage off faster.
Transform your basement into a legal suite
Have your home working for you by converting your basement into a legal suite. You can use the extra rental income to pay down your principle faster. The faster you pay off your principle, the shorter the mortgage.
Since 2003, Kristin Cooper has served the greater Sacramento and Placer County areas, providing great rates and low fees. She will walk you step-by-step through the entire mortgage process. Start application: (Click Here) or contact her directly by calling 916-390-4689 for more information.