While today’s interest rate environment makes having a mortgage more affordable than ever, it is important to never forget that paying off your mortgage is for the most people still a very good financial decision. With the average mortgage amount growing along with home values–making sure you pay down your mortgage has become more important than ever. While most mortgages today are amortized over 25 years, below are the tips that I give my clients who want to be mortgage free as quickly as possible. If you follow all the mortgage reduction strategies below, your mortgage can be gone a lot quicker than you think.
1 Never get an open mortgage at a fixed rate unless you plan on paying it off within its term.
2 Use accelerated weekly or bi-weekly payments.
3 Give your mortgage the same raise as you get each year.
4 Give your mortgage a portion of any bonus or extra income.
5 Keep your payments the same even if you renew or refinance at a lower rate.
6 Use your income tax returns to put a lump sum payment towards your mortgage.
7 Use extra money form your budget.
8 Never use a home owner line of credit for long term borrowing.
9 Consider a variable rate mortgage or short term fixed when market conditions justify it.
10 Seek independent financial & mortgage advice.
For more information, please contact Brenda Russelo at 519.358.3577