Buying a home is one of the best investments you can make and the best way to build equity.
Buying a home is one of the best investments you can make and the best way to build equity. Regardless, your 25 year mortgage amortization period can sometimes feel like a life sentence. Many people don’t realise there are several steps you can take to pay it off faster; without sacrificing your other financial and life goals in the meantime. Putting extra money towards your mortgage—which is likely the biggest debt in your life—means huge interest savings and being mortgage-free faster.
Set up bi-weekly payments
Once you have your monthly mortgage payment figured out, set up bi-weekly payments rather than monthly payments. By paying every two weeks rather than once a month, you’ll actually end up paying 13 monthly payments a year – which is an extra payment every year. This will cut your 25 year mortgage down by a few years and will save you money in interest.
Put “extra” money towards it
If you have a yearly bonus, or get money back on your tax return, (and you don’t have other high interest debt to pay off) consider putting that amount directly towards your mortgage.
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