My husband and I periodically dream about what it would be like to have our mortgage paid off. Can you imagine? For us, it would be like doubling our income by having our mortgage paid off. We got a great deal by refinancing a few years ago. Now, I’d love to get that mortgage paid off early. In case you’ve had similar conversations (and dreams), here are a few tips on how to pay off that mortgage early.
1. Mortgage payments. When you first buy your house, try to keep those payments at about 15 percent of your income. As I shared above, that’s not the case for us. (Maybe that’s why we are still working on it!) In any case, this is good to know when you first buy a house. The national average is 30 percent; aiming for about 15 percent of your income will give you a much better shot at paying it off early.
2. Check out bankrate.com. This site provides a tool to help you figure out various combinations of payments to pay off that mortgage early. You’ll just have to plug in the amount left on your mortgage, the amount of time you’ll like to pay it off or the extra amount you’d like to pay each month. You’ll end up finding out exactly how much extra you need to pay to pay it off in a given period of time. Check it out.
3. Divide up your payments. Rather than making one monthly payment each month, make two payments every two weeks. Because of the way the calendar is set up, you’ll end up making an extra payment without even thinking about it. That’s a great way to make a nice extra payment to move that ball down the field.
What are you doing to pay down your mortgage?
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