If you are a homeowner, you may be thinking, “How did I get into this?” when it comes to pondering your long-term loan agreement on your home. Most mortgages can stretch out 30 years and for many people, this is such a long time to even think about. You may be wondering “should i pay off my mortgage early” in full and if it is possible , so that you can get out from under your loan debt. The simple answer is, Yes! Here are some sneaky ways to pay off your mortgage early that will help drastically.
Sneaky Ways to Pay off your Mortgage Early
Round up your payment amounts
Let’s say your mortgage payment is an uneven number like $788. Round up to $800 instead and you will lower how much you end up paying in interest over the long haul, as well as shave off several payments towards the end of your repayment time. It’s also helpful to use an early mortgage payoff calculator and check the terms of your loan for any early repayment fees etc!
Keep paying that bill
Keep “paying” a bill that you don’t have any more and apply it to your mortgage. Let’s say you have a car loan and you pay $250 a month for it for 5 years. After the 5 years is up, continue to “pay” the car loan (aka budget for it as you always have) and apply that $250 to your mortgage each month. You will cut many months of paying and possibly years by doing this and you won’t even feel like you are paying extra since you were already used to budgeting for it for 5 years before.
Refinance your home for a lower time period to pay off
You will be paying more each payment, but you will get it paid off faster in the end. Alternatively, you could keep your loan payment where it is at and just pay it as if you are on a shorter term loan.
Take seasonal jobs and invest the amount on your mortgage
If you have the extra time, take jobs that usually pop up in the summer months or during the holidays for part time work and apply the entire amount to your mortgage. Sure, these jobs often don’t pay well, but they are a great way to make a few extra hundred dollars to give your payments a boost at certain times of the year and possibly cut off months to years of time on your loan.
There are MANY ways to earn extra cash, and you can even do it from home! Check out my article, 10 Easiest Ways to Earn Extra Cash From Home. You are sure to find at least one idea you can do.
Get creative with things you no longer need
Sell clothes, household goods, and furniture you don’t need in a yard sale or on Craigslist and apply what you make to your loan. You may only make a couple hundred dollars, but if you do that over the term of your loan, you will take time off of it. Every little bit helps!
