Services

The 5 Best Ways to Pay Off Your Mortgage More Quickly

couple thinking of buying a homeMany homeowners dream off paying off their mortgages. They hope to reap benefits that range from flexibility in their monthly budgets to protection from unstable housing markets. Here are five ways to be mortgage-free faster.

1. Consider refinancing.

There are various ways you can refinance your mortgage in Salt Lake City to accelerate your payoff date. You can, for instance, refinance your 30-year mortgage into a shorter-term loan.

You could alternatively refinance your mortgage to a loan with a lower interest rate but continue to pay the same monthly payment you were paying before the refinancing.

2. Make extra payments.

Small extra payments can result in significant savings. Several strategies can help you make additional payments. You can, for instance, commit some or all of any unexpected windfall toward the mortgage.

Also, if you make biweekly payments instead of monthly ones, you will end up making 13 monthly payments rather than 12.

3. Pay as if you have refinanced.

If you can’t refinance your mortgage, you can pretend you have refinanced and begin to make higher payments. This option assumes you can afford, you’re willing and you have the discipline to make such substantial higher payments.

4. Reduce property tax and homeowners insurance.

Could your house be overvalued? You should then consider asking your county to re-assess your property tax. Also, look for ways to reduce your homeowner’s insurance premium.

Lower property tax and lower premiums will lower your monthly mortgage payment. After a drop in your payment, keep paying your previous amount and let the difference help speed up your payoff date.

5. Downsize to a less-expensive home.

If your situation allows and you desire to be mortgage-free, you can move into a cheaper home. You can sell your current property and use the money to buy a more affordable house.

You can pay off your mortgage faster in two main ways: refinance your mortgage or make larger or extra payments. You may decide to use one of these strategies or use both in tandem. Moving into a cheaper home may also help.