Debt is undoubtedly overwhelming and stressful, and if you’re a homeowner, you’re probably looking for ways to pay off your mortgage faster.
The idea of owning your house and being debt-free is a thrilling prospect. Between ridding yourself of the pressures of owing the bank money, or you simply don’t want to put thousands and thousands of your hard-earned dollars towards interest, paying off your loan early can help lower your stress levels and increase the amount of money you save each month. If all of this sounds good to you, there are several things you can do to pay off your mortgage sooner.
Learn how you can live debt-free below.
5 Ways You Can Pay Off Your Mortgage Faster
If you want to pay off your mortgage faster, consider implementing any of the five following strategies:
- Make Extra Payments Towards Principal — By making additional payments whenever possible, you can pay off your mortgage sooner. Most loans issued after January of 2014 don’t charge a penalty fee for prepayments. This means you can make additional payments towards your loan balance (not towards interest) without any penalty. If making extra payments seem out of your reach, try making additional payments when unaccounted money comes in, such as a bonus from work, gift, or tax refund.
- Refinance Your Loan to a Shorter Term — Many homeowners’ loans are 30 years, but did you know that most lenders offer shorter terms, such as a 15-year or 10-year loan? It’s important to keep in mind that a shorter term means you’ll be making higher payments every month, just for a shorter amount of time. This also means you’ll be saving your money by paying less interest than you would with a longer-term loan. Additionally, by refinancing, you may be able to lock in a lower interest rate and pay even less money towards interest.
- Recast Your Loan — If you don’t want to refinance because you want to keep your existing loan, you may want to consider recasting your mortgage. By making a lump sum payment toward your principal, as you do when you recast your mortgage, you adjust your payoff schedule to reflect your new balance. For more information about recasting, click here.
- Make Bi-Weekly Payments — At this time, you are likely making one monthly payment towards your mortgage. Instead, you can make bi-weekly partial payments. This ends up adding one additional payment every year. Before doing this, make sure you chat with your lender so they can make the necessary arrangements.
- Sell Your House — If you are overwhelmed with debt and foreclosure is in the future, you may want to consider selling your house to pay off your mortgage. Foreclosure can lead to serious issues that can hurt your credit for many years. Avoid this by selling your home quickly.
Pay Off Your Mortgage Faster with Sell Your OKC Home
If you want to pay off your mortgage faster and enjoy a debt-free life, contact the professionals at Sell Your OKC Home today. We want to buy your property in the Oklahoma City area in its current condition. No spending money on repairs, renovations, or cleaning. Contact the experts at Sell Your OKC Home for a fair, all-cash offer now.