Money-Saving Tips for Homeowners – The sense of independence that comes with having your house paid off fully is incomparable. Suddenly, you have financial security, money that can be used for travel or house upgrades, and the sense of accomplishment that comes from knowing you’ve accomplished something significant.
If your ultimate objective is to become debt-free, paying off your mortgage will play a significant role in achieving that goal.
The average mortgage in the United States is $309,200. That may appear to be an almost insurmountable mountain to scale in 30 years, but the prospect of cutting that time in half is astounding.
Fortunately, there are certain money-saving strategies that you can put into action right away to get you started on the road to financial independence.
How to pay off your mortgage in half the time it takes today
1. Determine whether or not you are in the right house.
One factor to consider when attempting to figure out how to pay off your mortgage in half the time is whether or not you are in the right home.
Sale of your present home and downsizing to a smaller or less feature-rich property is one method of lowering your monthly payments and freeing up funds to make more payments on your home loan.
While you are under no obligation to sell your house, it is an option you may want to consider if your mortgage is causing you significant difficulties.
2. Refinance to get a better interest rate
Interest rates in the United States are remain at historically low levels. While this element varies from week to week, you should speak with a number of different lending organizations to determine whether you can save money by refinancing your mortgage.
If you can save at least a few hundred dollars each month on your payment, you can use that money to make a monthly contribution towards your principal.
3. Pay off the smallest debts first (if possible).
If you have minor debts, focus your efforts on paying them off as quickly as possible.
It will cost around $230 per month or more to pay back a student loan of $20,000 at 6.8 percent interest during a 10-year repayment period.
If you wipe off your student loan debt, you will be able to put that $230 toward your monthly property payment.
4. Make additional payments on your house.
How can you reduce the length of time it takes to pay off your mortgage by half? Set up extra income and make an additional housing payment every three months to avoid debt (once every three months).
You will be able to pay off your home 11 years earlier and save tens of thousands of dollars in interest as a result of doing so.
5. Remove all of the extras.
Would you be willing to forego that $3.00 cup of coffee you buy five days a week in order to make a larger contribution to your principal? Perhaps you could limit your coffee purchases to Mondays only, putting the remaining $12.00 in a savings account instead of your checking account.
That might not seem like a lot of money, but it adds up over time, and you can multiply that number by the other things you’re foregoing to get a more accurate picture.
There are also other simple methods to save money around the house by adopting a green lifestyle.
6. Be Familiar with the Rules
Contact your mortgage lender and find out what the requirements are for making biweekly payments, making extra payments, and paying off your mortgage early in the process.
Some lenders have very precise guidelines that must be followed. The last thing you want is to believe you’re making progress on your mortgage only to discover that you’ve simply paid a payment in advance.
7. Make a Merchandise Sale
Do you have a lot of unused items laying around the house? Hold a garage sale or place an ad in the local classifieds to sell your stuff.
The amount of money you may make in a short period of time will astound you. Put all of your money toward your principle in order to reduce the amount you owe to the lender.
8. Take on a part-time job
Another option for making extra money to help pay down your mortgage is to take on a part-time job.
Take on a part-time work as a waitress at a local restaurant on the weekends, or set up a flea market stall in your spare time. Many direct sales organizations may allow you to earn a little additional money by hosting parties in people’s homes a couple of times a week as part of your compensation plan.
Originally posted 2022-01-27 12:12:43.