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Save Money By Paying Off Your Mortgage

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Save Money By Paying Off Your Mortgage

For most people, the mortgage is the biggest bill each month. How nice would it be to not have a mortgage payment? You could use the money on other things that you really need. If you want to eliminate that pesky, bill, there are a few things that you can do to pay off the mortgage. Therefore, here are some tips to pay off your mortgage.

Use a Separate Checking Account to Pay the Principal

Paying extra money on the principal is one of the keys to paying down your mortgage. However, you seem to never have enough extra money in your checking account to pay additional on the mortgage. Open a separate checking account. Each day or week, deposit a little extra into the checking account. These extra payments will really add up, so you can pay down the principal much quicker.

Refinance into a Lower Term

Bankrate states that you can save over $60,000 when you refinance your mortgage. The most popular type of mortgage is a 30-year loan. People like this because their monthly payments are lower. However, shorter terms have lower interest rates Refinancing at a lower rate and a lower term can shave up to 10 years off your mortgage.

Do your Own Home Repairs

If you are a tool and do-it-yourself person, you can conduct the necessary repairs yourself. Research data from the UBank’s Home Truths shows that many people stated that this is an action they would take to help pay off their mortgage. Repairs on your home can really add up, especially as your home gets older. Do not pay a professional; just do it yourself. You can find tips online that will help you will the process. You can then use the extra money to pay towards the principal of the loan.

Make an Extra House Payment Each Quarter

Dave Ramsay says that if you can just make an extra mortgage payment several times a year, you can save $65,000 in interest. That is a lot of money. That is easier said than done. Most people do not just have an extra mortgage payment laying around. However, do some things to get some extra funds for that. Increase your payment when you get a bonus at work, or increase your work hours. Try to find ways that you can scrounge up a little extra money to pay down on the principal.

Cut other Expenses

If you decrease your other monthly expenses, you can use the additional funds to help pay down on your mortgage loan. You might switch to a cheaper cell phone service, or you might bundle your bills. Eliminate your magazine subscription, or save money on gas. There are so many ways to slash your expenses. You can then focus on applying the extra savings to your mortgage loan.

Set a Payoff Date

If you have a goal in mind, you can work hard to reach that target. You can find so many online calculators that can tell you how much money you need to pay on the mortgage to pay it off. If the payoff is within reach, you will work hard to make sure you achieve that goal of eliminating your mortgage loan. You can save huge amounts of money if you will just research your options to learn how.

If you are interested in paying off your mortgage, you need to prioritize your debt. For most people, the mortgage is not on the list of priorities. However, if you make it a priority, you can save a huge amount of money. You just need to focus on your mortgage loan, and get it paid as soon as possible. You can then have additional money each month to apply to other things that you might need.

Posted-In: contributorPersonal Finance Real Estate

 

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