Paying off your mortgage early can save you thousands of dollars in interest and provide financial freedom. At Active Lending Group, led by Tiffany Nyiri, we offer strategies to help you achieve this goal.
1. Make Extra Payments Consider making extra payments toward your principal. Even small additional payments can significantly reduce the overall interest and shorten the loan term.
2. Bi-Weekly Payment Plan Switch to a bi-weekly payment plan instead of monthly payments. This results in 26 half-payments or 13 full payments annually, effectively reducing your mortgage term.
3. Round Up Your Payments Round up your monthly mortgage payment to the nearest hundred. For example, if your payment is $1,450, round it up to $1,500. The extra amount goes directly toward the principal.
4. Use Windfalls Apply any unexpected financial windfalls, such as tax refunds, bonuses, or inheritance, directly to your mortgage principal.
5. Refinance to a Shorter Term Consider refinancing your mortgage to a shorter term, such as 15 years instead of 30. While monthly payments may be higher, the total interest paid will be significantly lower.
6. Allocate Extra Income Direct any additional income, such as a raise or side job earnings, towards your mortgage. Consistently applying extra income can accelerate your payoff timeline.
7. Stay Disciplined Maintaining discipline and consistency in your extra payments is crucial. Track your progress and celebrate milestones to stay motivated.
8. Consult with Your Lender Before making any changes, consult with Active Lending Group to ensure there are no prepayment penalties and to discuss the best strategy for your situation.
Paying off your mortgage early is a rewarding financial achievement. Contact Active Lending Group today to explore your options and develop a plan tailored to your goals.