Today, due to skyrocketing prices of houses and apartments, it’s become nearly impossible for the average american to buy their dream home. Banks and mortgage lenders have come up with a solution by providing mortgage loans to people. Once your home loan is approved and you start living in your new home, the next thing that’ll bother you is how to pay off your mortgage faster. Paying off your mortgage loan as soon as possible is the smartest thing to do and gives you complete ownership of your home.
4 Ways to Pay Off Your Mortgage Faster
Here are 4 ways that'll help you pay off your mortgage faster.
1. Switch to Biweekly Payments
Instead of paying a full monthly payment, you can make half of your monthly payment once every two weeks. You basically make one extra mortgage payment per year. With the help of a biweekly plan, you’ll pay your loan off much quicker than with a bimonthly plan. Using a biweekly plan, you’ll save thousands of dollars over the life of the loan.
2. Refinance to a Lower Interest Rate
If your mortgage interest rate is high and you want to reduce it, the best option would be to refinance. Refinancing your loan may help lower your interest rate and monthly payment. We recommend you consult mortgage lenders in MA. Home loan officers will suggest a mortgage program that’ll suit your needs.
3. Make Extra Principal Payments
Most mortgage lenders allow extra payments and mark it as principal. This means that the payment will go to pay down the principal rather than both the principal and interest on the loan. Paying extra principal each month will help clear your loan before your loan term.
Read Also: How to Get a Mortgage Home Loan?
4. Make A Lump-Sum Payment
Many people receive a tax refund every year. If you use that money to pay your mortgage, you’ll progress faster towards paying off your mortgage loan. Consider applying some or all of that money to your principal balance. It’s one of the best strategies to pay off your mortgage loan before your loan term is over because you’re making higher monthly payments. If you receive a bonus check from work or some amount of money as a gift from your relatives, put this money towards your principal balance.
If you’re a first time home buyer in MA and are looking for a mortgage lender in Boston, Worcester, Shrewsbury, and Peabody, MA for a mortgage loan, Drew Mortgage Associates can help! Drew Mortgage Associates is a Boston mortgage lender that can assist you with mortgage loans, help you refinance to a low-interest rate or reduced term that best suits your financial goals. Our mortgage planners are highly trained professionals that can identify the best refinancing program that’s right for you.