Mortgages tend to be the most expensive expenses most families can have. It is no secret that many acquired home ownership thanks to home loans made more affordable and easier to qualify for. However, we can agree on one thing – paying off your mortgage can become a stressful liability.
If only there are things you can do to pay it off as quickly as possible.
Good news is, you can repay your mortgage lender early in many ways! It may not be a walk in the park, but it is never impossible.
You can live mortgage-free – and fast by considering the following hacks.
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First, Save Up Enough Cash To Cover For 20% Down Payment
The best way to start your way into living a mortgage-free life is by making the right choices at the beginning. This includes having enough money in your bank account to pay for the standard 20% down payment. By spending 20% upfront, you get to enjoy lower interest and monthly mortgage rates, which gives you better chances of paying your lender earlier. It will also save you from Private Mortgage Insurance fees – a premium that can only add up to your expenses.
Recommended Read: 8 Tools That Make Saving For A Down Payment Easier
Build Your House With A Home Construction Loan
If you want to build your house from scratch, you can apply for a home construction loan. It is a short-term loan that allows you to pay the interest fees only every month, and when the project is complete, that’s the time you’ll be paying the principal amount.
Increase The Frequency Of Your Monthly Mortgage Payments
You get to pay off the home loan faster and get rid of the heavy mortgage fees every month by increasing the frequency of your payments. Pay half-sized payments every two weeks instead of your usual once a month mortgage payment. This way, you’ll end up making extra payments every year.
Pay Extra Principal Payments
For example, your mortgage lender helped finance your home with you applying for Mortgage Loans Corpus Christi. Instead of only paying the monthly mortgage fees, you can opt to make extra payments. Let your lender know that the additional payments they will receive from you, and you want to be principal-only payments. This means you’re paying for the principal amount only which allows you to save yourself of interest fees.
Consider A Mortgage Refi
Refinancing your home loan can reduce your interest rate by taking out a shorter-term mortgage. With a short loan term, you only need to pay interest fees that are lower compared to your first mortgage. Consider a HELOC once you have enough home equity. A Home Equity Line Of Credit allows you to repay your lender in lesser time by achieving equity optimization.
Buy The House With Seller Financing
Some sellers are willing to finance your home purchase. You only need to create and agree on the terms, sign a contractual agreement, and pay monthly payments until you paid the loan in full. After paying the seller the total amount, they will transfer the title to your name.
Good Read: The Ins And Outs of Seller-Financed Real Estate Deals
Before making extra payments and attempting to pay your mortgage early, talk to your lender and learn about their early mortgage retirement policy.