Clever Tips for Paying Off Your Home Mortgage Faster

By
Real Estate Broker/Owner with Mann & Sons, Inc. REALTORS®

Paying Off Your Home Mortgage Faster

Paying off the mortgage on your Coastal Delaware home faster not only means that you’ll be able to enjoy the peace of mind that comes with completely owning your property earlier, but you may also save thousands of dollars in interest payments.

Below are seven clever tips to help you get your mortgage payments on the fast track.

1. Save for a large down payment

Pay as large a down payment as you can reasonably afford. The more you can put down, then the less you’ll have to borrow from the bank.

2. Read the fine print

When you are choosing a mortgage, look at the fine print to find out if any restrictions apply to paying early. Some lenders will charge you for making extra or early payments.

3. Prepay early in the life of the mortgage

This is when the loan is the most interest-heavy. In the first five to seven years you are likely paying mostly interest. Request an amortization schedule of your mortgage to get a clear picture of how this works.

4. Be smart with unforeseen fortune

If you get an unexpected chunk of cash, such as a gift, prize, work bonus, inheritance, tax refund or other windfall, consider applying it straight to paying down the principal on your mortgage.

5. Double-check your records

When you make extra payments, ensure that they are processed correctly. Sometimes when the lender receives a payment that is outside of the monthly cycle, they may not know what to do with it. Make a special note and keep track of the payments yourself, so you can make sure they’ve been applied to your principal.

6. Increase your payment

Even increasing your payment by a small amount every month may take years off the length of your mortgage. Consider how much you can afford to pay every month rather than just the minimum payment amount.

7. Think about a bi-weekly payment

You might want to switch to an accelerated bi-weekly mortgage payment rather than a monthly payment. This typically applies an extra payment each year.

These are just a few techniques you can use to pay off your mortgage faster. Remember, the quicker you pay off your mortgage, the less interest you will be paying.

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Rainmaker
1,583,533
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Lend Smart Mortgage, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance
Good tips and don't forget about making an extra mortgage payment each year. It is equivalent to bi-weekly payments.
Feb 16, 2013 09:23 PM #1
Rainer
307,605
Jacob Thomas, Weston, Davie, Coopercity, Southwest Ranches, Miramar Realtor
South Florida Estate Homes Inc - Weston, FL
South Florida Estate Homes Inc.

Bill

Great Blog! If we follow these steps one can definetly pay off faster.

Feb 16, 2013 09:31 PM #2
Rainer
14,841
Bill Mann
Mann & Sons, Inc. REALTORS® - Rehoboth Beach, DE

How could I have forgotten the extra annual payment...that is exactly what I do for my own mortgage. :)

Feb 17, 2013 08:50 AM #3
Anonymous
NJ FHA

 

Thanks for sharing the brilliant article with excellent ideas.

<a href=”http://www.fcbhomeloans.com/nj-fha.php”>NJ FHA</a>.

 

Mar 06, 2013 05:13 PM #4
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Rainer
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Bill Mann

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