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Mortgages are extremely helpful in making your dream home a reality. But, with many other financial obligations, it helps to repay your mortgage as quickly as you can. At Total Mortgages, we are committed to helping you finance your dream home easily and quickly.
Here are 5 tips that our experts recommend you to follow, to pay-off your mortgages in under a decade:
- Make a higher down payment
A higher down payment may be heavy on the pocket initially, but it will save you a lot of trouble over the course of your mortgage term. Pay a higher down payment now and pay-off your mortgage sooner.
You can also choose to add an additional $100 per scheduled payment to get things moving faster.
Refinancing is a great way to repay your mortgage. When you refinance, you take loans that are either the same value of your mortgage or at a higher value, but at lower interest rates. For example, if your mortgage is at $100,000 30-year fixed @6.25%, your refinanced loan may be either $100,000 15-year fixed @4.50% or $150,000 30-year fixed @4.50%.In the former you have a low interest rate and a shorter repayment period and in the latter, a longer repayment period, a lower interest rate and a better loan price. Either way, everything works in your favor. Now you can pay-off the old loan with the new one and spend much lesser repaying the new loan due to the reduced interest rates.
- Make additional monthly payments
Although your mortgage repayment schedule has fixed repayment slots, some mortgages do allow you to make additional voluntary repayments, without the associated fees. Making these extra payments when you have money in the wallet can help you reduce the number of repayment cycles in the long run.
- Say no to home refurbishments and upsizing
It may seem tempting to add a new deck or a conservatory to your home. But, when you do so, you run the risk of taking on additional loans that may be difficult to pay-off. Until you repay your mortgage, avoid making unnecessary expenditures which can be postponed to a later date.
- Bank on your windfalls
Your savings, profits and tax returns will all come in handy when you prepare to pay-off your mortgages. Tap into your windfalls and make higher payments each month.
Whether you need assistance in planning your mortgage or paying it off, you can rely on our team at Total Mortgages to guide you to take the right decision.