3 Tips for Paying Off Your Mortgage Sooner

For parents out there trying to manage running their home, working full time, volunteering in their community, and taking the best possible care of their kids, things like having to worry about saving on your home loan may be something you place on the back burner. However, if you neglect to understand your home loan, you could end up paying a lot more money than you otherwise would have to. So to help you save some money and get out of debt sooner, here are three tips for paying off your mortgage sooner.

Consider Refinancing

Depending on your individual situation, choosing to refinance your home loan may be a great choice for you. When you refinance, you can often get a better interest rate on your loan or shorten the life of your loan. Both of these things will help you to pay less in interest and potentially pay off your loan at a much quicker rate. According to Vera Gibbons, a contributor to Real Simple, getting your interest rate lowered by just one percent could save you thousands of dollars in interest over the life of your loan. But before you choose to go this route, make sure it makes financial sense for you and your family.

Make One Extra Payment Per Year

Even paying a little more than your minimum mortgage payment each month could help you pay off your loan quicker and ultimately save you a lot of money. One great way to work these extra payments into your routine, according to Marilyn Lewis, a contributor to MoneyTalksNews.com, is to pay your mortgage biweekly rather than monthly. By doing this, you’ll ultimately be making 13 full mortgage payments each year rather than just 12. But before you do this, make sure your lender approves this type of plan. Not all lenders will allow you to send in a partial payment twice a month and apply it to the principle, so double-check before you start making these types of payments.

Put All Extra Money Toward Your Mortgage

Most people find that at some time during the year, they come into a little bit more money than they normally do. Whether it’s from a bonus at work, a tax refund, or just a random windfall, if you choose to add this money straight to your mortgage payment, Dana Dratch, a contributor to BankRate.com, shares that you could end up saving thousands of dollars in interest. Additionally, you’ll also be able to pay off your debt much sooner than was originally projected.

If you’re looking for a few simple ways that you can pay off your mortgage quicker and pay less in interest, consider using the tips mentioned above to help you do just that.