Having a home of your own is a beautiful thought which everyone wants. However, everyone adopts a different path to achieve the goal. If you are not a millionaire, then the only way for you to have a home of your own is through a mortgage. The installments of the mortgage continue for years and that’s annoying. However, here is the trick to tackle this annoying situation, and in this article, I am going to discuss some of the tips and tricks to make your payment early and to take over the ownership of your own home as soon as possible.
But how all this is even possible? Well, there is a simple logic behind early payment of the mortgage. When you make larger than the usual installment payment, then you in actual put a dent in the principal amount. However, this article will cover only the ways through which you can make your installment bigger to end up your mortgage early.
Start with one extra installment:
It is not easy to increase your payments as you have other obligations to fulfill as well. However, you can start with raising one additional installment each quarter. Believe me; you will be amazed at how quickly you are going to pay your mortgage.
Cut your expenses:
I know by cutting your costs you take the impression as I am talking about reducing your more significant costs or necessities. But this is not the case. You can make a considerable saving by reducing your small routine expenses. Have you ever wondered how much you spent on your Starbucks coffee? Well, about $3 per day and $25000 per year. Shocking? Of course, it would be. The sum could be much more than that if we add our daily lunch out routine in it too.
You can save thousands of dollars and can get rid of your mortgage many years ahead but simply cut the avoidable expenses.
Go for refinancing:
We usually choose a long-term mortgage to finance our home. However, have you ever thought the longer the term loan, the larger would be the interest that we have to pay on that loan? So instead of going with a more substantial long-term, go for a refinance option and choose a smaller term mortgage.
Be smart: downsize the home
I admit that downsizing your home sounds a bit radical decision. However, if you want to make early payment of your loan, then selling your bigger house and shifting in the smaller one seems to be a good trick. You can sale your bigger house and utilize the profits in making payment of your loan. Of course, you won’t be able to fully settle the loan, however, you may succeed to reduce it significantly.
Look before you leap:
Applying for a mortgage for having a house of your own is a highly significant decision and should be taken with complete consciousness and homework. Have you first to check your sources to pay back the debt and either you be able to pay the regular installments on time without getting worried? Use a mortgage calculator and calculate all the costs and payments.
Seek expert opinion:
An expert and professional real estate agent will provide you with a handy and useful, advice regarding the type of mortgage you can choose and how to finance the debt. So find a professional realtor in your area and consult your house requirements with him.
In the end, I just want to add that being in debt sometimes got on your nerves. So the sooner you get rid of this, the sooner you will be able to enjoy your life.