Boston property Management: Pay your mortgage in 10 years
Mortgages are quite tough to get because the value of homes are quite high. It takes a lot of work to get the financing and can take decades to pay it back (including interest). The advantage of paying off your mortgage early is that you can rest easy knowing that you have paid off your debts. If you follow these steps you can reduce the time spent on paying it back.
Rent out space in your home
Services such as Airbnb have made it easier for people to rent out their rooms to people. It is easy money and you can make plenty to help you accelerate your mortgage payments. You can also opt to live at some place cheaper while you let your place to long term tenants. If that is not feasible for you then you can always rent out your parking spot or your storage space.
Accelerate your mortgage payments
Experts recommend making an extra mortgage payment every quarter. Not only will you save around $65000 in interest but you pay off your mortgage 11 years ahead of schedule. The best way to do this is to divide your mortgage payment by 12 and add that amount to your monthly payment. It helps to check and ensure that your lender does not charge any prepayment penalties.
Make bi-weekly payments.
Another way of tackling this is to make one payment every two weeks as this will take it to around 13 payments per year instead of the usual 12. This will help reduce the balance of your loan and shorten the payment period.
Boston Property Management: Refinance your loan
This is a method where you can shorten the loan by making higher payments till it is paid off or you can choose to lower the payment and pay the difference toward the principal or you can get a lower interest rate. Real estate experts claim that this will reduce years off your mortgage and save you thousands in interest.
Other ways to pay it off
First of all you need to set a realistic payoff date and then come up with a goal which is attainable. The first goal is to increase your earnings so that you can have extra to pay off your interest. So this would mean working overtime, taking a second job, freelancing, odd jobs, etc. Basically you would have to do whatever it takes to bring in a second income.
The best way to save money for a mortgage is to cut down on unnecessary expenses. So if you like to eat out, it would make more sense to eat at home. Do not buy any new clothes, get rid of your cable tv, do not treat yourself to any luxuries and change your insurance plan to reduce your premium. It is tough but you will save enough to make mortgage payments.
We hope you liked our guide “Boston property Management: Pay your mortgage in 10 years”.