Everyone wants to be done with their home mortgage as soon as possible but it isn’t always possible. Some people are left paying a mortgage well after they retire and this can be an especially difficult position to be in.
But it doesn’t have to be this way. By being smart and making some things the governing principles of your financial life you can make sure your mortgage is paid faster then it usually would be.
Make a Large Payment Every Once in a While
Making large payments may seem impossible for many people, however, it is possible. For example, you can take up some extra work the payout for which can be used to make a one-time large payment on your mortgage. Or you can put by a specific amount every week or month to make a large payment at the end of a few months or at the end of the year.
Making a large payment is a smart move because it not only makes the day when you are free of mortgage get closer, it also lowers your interest so you will eventually be paying a lot less interest than you would be paying otherwise.
Add Extra Amount to Payments
Whether your mortgage payment goes weekly or monthly, it is possible to make a habit of adding a few extra dollars to the payment each time. For example, if you stick to adding $500 to your payment every month, your mortgage will get done sooner and you’ll have more money to spend.
An even better idea is to get higher minimum payments when you get your mortgage. This way you are forced into working with what you have. Higher minimum payments just mean that you get can rid of your mortgage faster and be free of debt. It’s all about how you manage your expenses.
Look at Your Expenses Honestly
Let’s face it, we do waste a lot of money on things we do not need. There are times when we can just take a look at our monthly spending habits and pin-point areas where we could save money. For example, do I really need to eat out every week? An average meal in Boston costs around $40 to $60. That’s $240 that you could have saved up to make a larger payment on your mortgage.
The money in your pocket right now is going into mortgage payments. By being a bit more careful and smart about how you manage your finances you can ensure that the money in your pocket remains yours. That isn’t such a bad deal, is it?