How to Pay Off Your Mortgage Faster

Buying a house is a huge accomplishment; however, paying off mortgage much faster is the best investment one can make.

Possibly you have worked with an amazing real estate agent and got a great deal on your property; however, like two-thirds of homeowners, you need a mortgage to afford the purchase. Since a lot of homeowners want to be out of a debt as much as possible, it is imperative that one must be able to pay mortgage sooner instead of later.

So check out these tips on how to get out of your mortgage early.

Bi-Weekly Payments

Rather paying your mortgage every month, 12 times every year, you can pay it every two weeks totaling 26 payments per year. Increasing your payment frequency to every two weeks can help in cutting three years off from your amortization calendar.

Make One Extra Payment Per Year

Making one extra payment each year has the same effect as paying your mortgage every two weeks. According to mortgage brokers in Toronto, this step is among the most valuable steps you can make in lowering your mortgage payments. However, if you do not have the money, you can always seek advice from your bank in finding other options to make a one-time payment, like making extra payments every two weeks to saturate the impact.

Round Up Your Mortgage Payments

Always remember that every dollar counts in paying your mortgage. The faster you pay off your loan, the more you save in interest. Another good way of paying off your mortgage much faster is rounding off your mortgage payments.

Consider Refinancing

Having your mortgage refinanced means acquiring a new loan to pay your previous mortgage at low interest. But, for you to refinance a property, you have to undergo a number of closing costs, which are administrative fees needed to process your new loan. It could mean that you would be paying a few thousand dollars.

Earn Funds from Other Sources

You can designate a certain amount from your bonus, extra jobs or freelance work to help pay off your mortgage. If you have a variable income, instead of making regular extra payments to the principal, you can make one large payment if you can.

Be Educated

After you have your mortgage and have started paying, it can be easy to forget about it since it’s becoming an automatic payment. However, don’t just leave it at that. You must stay informed and must be updated on interest rates and other mortgage options. Knowing what your options are can greatly help you to possibly save money.

Contact Rakhi Madan Mortgage Agent for mortgage help in the Greater Toronto Area.