A mortgage is a legal document that you sign when you purchase or refinance a home; if you don’t pay it, the contract gives the lender the right to take your property. Mortgages are a commitment, and they cement you to the responsibility of repaying your loan. Thinking about it can feel overwhelming, but you shouldn’t worry!
Keep on reading to learn how you can pay off your mortgage quickly.
Benefits of Paying off My Mortgage Quickly
After years of saving for your dream home, you finally make it come true in the southeast! You can’t wait to invite your friends over. Reality then hits, and you realize you’re now stuck with a mortgage for what seems like forever. Perhaps you would feel less burdened if you didn’t have to make this expensive payment monthly, and you could spend your money on other important matters.
Here are a few simple hacks to help you pay off your mortgage in no time.
Consider a Biweekly Payment
If you’re like most homeowners, you probably make monthly mortgage payments. Think about switching to a biweekly one, which means you would make a half-sized payment every two weeks.
For example, if your average one is $1,000 a month, you’ll save $500 every other week, by shifting to a biweekly one payment. You may wonder, “Isn’t it the same as paying $1,000 once a month?” Not quite.
There are 52 weeks in one year, so implementing a biweekly payment plan means you pay 13 full-sized payments a year instead of the 12 you currently pay. Switching to this plan means you’ll make an extra payment annually.
Now you’re probably thinking, “An extra payment? Why would I do that?” Think about the goal: if you have a 30-year $200,000 mortgage at a 5% interest rate, paying every two weeks can save you $34,400 in interest. Data doesn’t lie.
Pack Your Lunch
You probably don’t want to admit it, but you may be guilty of eating out during your lunch break. You may justify it by saying it’s just once or twice a week. However, the amounts add up.
Don’t feel embarrassed about bringing last night’s leftovers to work. If you’ve budgeted at least $100 a month on lunch money alone, you can transfer that amount to your mortgage; this can save you over $28,000 in interest.
Even if you have to wake up a tad earlier, bringing your lunch to work is healthier on your body, better for your wallet, and reduces your mortgage. Furthermore, you may notice an improvement in your mood because you’ll be enjoying healthier foods. Best of all, you can lessen your worry of a long mortgage.
Contact Southeastern REI
Are you experiencing financial hardship due to your mortgage? If you’re a resident of Alabama, Georgia, or Tennessee, you can sell your house to Southeastern REI for a speedy, all-cash offer. No fees. No realtor commissions. Put more money in your pocket by reaching out to us today.