Buying a home is the biggest dream for everyone else in this world. It is one of the biggest purchases you make in your life and also a major debt in life. As some people will win successfully while some get into more debts. Ultimately winning depends on the way and tips you follow. Just buying a home is not enough, the money or mortgage you cleared within time will be a great thing. It is easier to pay your mortgage early by simply knowing the top finance tips that are safer, faster and even painless than others.
Add Principal Payments Monthly
If you want to pay-off your mortgage early, start playing with mortgage calculators now. Add a little payment to your principal here and see the magic of shortening the length of your loan yourself. As your monthly principal payments increase, the length of the loan period also reduces.
Make Yearly Principal Payments.
Also if possible, pay a huge amount of money towards the mortgage once a year. This easier method helps you plan your tax refund or annual work bonus. Huge payment once in a year also reduces the term of your mortgage loan and also saves you pay less for interest charges.
Move to Bi-Weekly Payments
This is the best financial tip for people who want to clear your mortgage early. This simple option will be available through lenders and it occurs every two weeks, resulting in more payments over a year. Instead of traditional monthly payments, it is simple method.
Make Lump-Sum Payments
Throw money at the loan when you have lump sum of money instead of making scheduled prepayments. If you get a tax refund, put it in your mortgage loan. Every little bit amount will helps a lot!
Reduce Expenses and Increase Earnings
Review your budget to find ways where you can reduce your expenses and increase possible earnings. Find the best mortgage prepayment plan that works best for you to payoff your mortgage loan as soon as possible.