Pay Off Mortgage Faster

Tips to Pay Off Your Mortgage Faster

There are several ways to pay off your mortgage faster. Here are a few:

• Pay extra on your mortgage principal each month
• Make additional payments on the principal when you can
• Refinance into a new loan with a shorter term

Let’s look at the advantages of refinancing to a shorter term.

How a Shorter-Term Mortgage Can Save You — Big Bucks

It’s simple — the longer you take to pay off a loan, the more interest you pay. If you take a $100,000 loan and spread it over 15 years, you’ll pay less interest than if you stretch it out over 20 or 30 years.

Currently, we have historically low-interest rates. So, the shorter terms of 10, 15, and 20-year loans are now affordable.

Advantages of Paying Off Your Mortgage Quicker

If your goal is to pay your mortgage off faster, refinance to a shorter-term and experience these advantages.

1. Retire Without a Mortgage — if you’re looking to retire within the next 10 to 15 years, it’s essential to have your monthly budget fit within your retirement income. When you don’t have a mortgage payment, that will drop your overhead substantially.
2. Free Up Your Money — Without a mortgage, you’ll have more discretionary income for traveling or whatever you choose.
3. Increase Your Net Worth — When your mortgage is paid in full, your net worth is increased. All the equity in your home is yours — not the banks.
4. More for the Kids — Do you have the goal of leaving your children your home? Paying it off early ensures they’re not burdened with mortgage payments.

What Are My Choices?

Give us a call, and we’ll go over your options. We can compare different loan terms and payments to see what you’re comfortable with.

Refinance to a Shorter Term & Save

Consider refinancing your mortgage if you’d like to save money on interest and pay your mortgage off faster. See what our clients have to say about refinancing with Homestead.