Loans can suck all the life out of living. And the biggest loans a person or a household gets in their lifetime is their mortgage for the house. While these often go for decades-long terms, the quicker you can get out of them, the better.
Here are five ways to make sure you pay your mortgage quickly:
Put up a higher down payment.Higher down payments mean that you only have to finance a lesser amount. That also means less principal on which interest will be charged. This can allow you to either draw out a longer term (bad) or deal with a more manageable
Go for a shorter term. Longer terms means interest will be piling on for long. Shorter terms often. You just have to balance this out with the a comfortable amortization since shorter terms means you have to pay larger amounts monthly.
Make more sizable payments. If you’re already into your mortgage, ask the bank if you can increase your monthly amortization. Just make sure that you make the terms clear since some loan programs might not really give you a better value even if you pay more quickly.
Make more payments. If possible, try making more payments. Switching from a monthly to a bi-monthly arrangement may help you hack away at the remaining debt.
Refinance to lower interest rates. Refinancing’s a really tricky thing but if you can work out a better deal, then consider it. Crunch the numbers. If, in the end, you’ll be handing out less money with refinancing, then go for it.