Debt can feel overwhelming, and if you’re a homeowner looking to wipe out your debt, you may be wondering ways to pay off your mortgage sooner.
Getting out of debt is an exciting prospect. Whether you just want to rid yourself of the pressures of owing money or want to avoid paying thousands and thousands of dollars in interest, paying off your mortgage loan can help increase cash flow and significantly lower your stress levels. Thankfully, if you want to pay off your mortgage faster, there are a handful of good ways to get the job done.
Learn more about ways to pay off your mortgage sooner below.
How Can I Pay off My Mortgage Sooner?
Live a debt-free life with the following five strategies:
- Refinance to a Shorter Term — The most common home loan is the 30-year option, but most lenders will also offer shorter loan terms. Other popular alternatives include 15-year loans, 10-, 20-, and 25-year loans. While a shorter repayment period means you’ll be making higher payments each month, it also means you’ll be paying less interest over the lifespan of your loan. Moreover, you could lock in a lower interest rate, paying even less of your hard-earned money to interest.
- Consider Bi-Weekly Payments — Instead of making monthly mortgage payments, consider making bi-weekly partial payments; this ends up adding one extra payment each year. Make sure to speak with your lender before doing this to make necessary arrangements.
- Make Additional Principal Payments — Pay off your mortgage sooner by making extra payments whenever you can. The majority of loans that were issued after January 2014 do not charge penalties for prepayments. This means paying additional money towards your mortgage balance (not interest!) without facing a penalty. Making additional payments may seem impossible if your budget is tight, so many homeowners will make these extra payments when unaccounted for money comes in, like a tax refund, bonus, or sudden gift comes in.
- Recast Your Mortgage — If you want to keep your existing loan, consider recasting your mortgage. You can make a lump sum payment toward your principal, adjusting your payoff schedule to reflect the new balance. Learn more about mortgage recasts here.
- Sell Your Home — If your current debt is overwhelming you and the foreclosure of your home is looming, you may want to think about selling your property and paying off your mortgage to avoid serious issues like this that can really hurt your credit long term.
Pay Off Your Mortgage Sooner with Texas Sell Now
If you want to pay off your mortgage sooner and rid yourself of the stresses of debt, you may want to consider selling your Dallas or Fort Worth area home to the professional buyers at Texas Sell Now. We want to give you cash for your house in its current condition — you won’t have to spend more money preparing your property for a traditional sale — no repairs, cleaning, or renovations. Contact the experts at Texas Sell Now for a fair, all-cash offer today.