Experts Reveal Secrets to Paying Off Mortgages Faster
Buying your dream house isn’t easy. There are several hurdles to tackle, like taking mortgages, making down payments, handing the paperwork, paying insurance, and whatnot. It takes an entire journey to transition from a homebuyer to a debt-free homeowner, and unless you manage your finances well, it can be a rather long one.
So how do you ensure you don’t get stuck in mortgage cycles that extend over several years?
Well, for starters, you can follow these tips by renowned real estate experts.
Tip 1: Use your additional income
Experts like Juan Kasuga, managing partner of Creditaria, assert that you can utilize any additional income that you earn for paying your mortgage faster.
Now, what is additional income, you ask? Well, it’s nothing, but the amount you earn unexpectedly or that’s above and beyond your regular source of income or your salary. A company bonus, for instance! If you benefit from a handsome bonus, dedicate a significant portion of it towards your mortgage payment. That will work to reduce the overall term of your mortgage and help you clear it off faster. But you might have to consult your bank before making such a payment.
Read – Why are additional incomes important
Tip 2: Follow discipline
Much like the other aspects of life, you can quickly become a debt-free homeowner by the following discipline.
According to Kasuga, you should consult your bank if you can exceed the pre-decided monthly installment amount if your budget allows it. For instance, find out if you can pay 20 percent more on your monthly contribution. So say your regular monthly payment is $100, find out if it’s okay for you to pay $120 whenever possible.
Tip 3: Consult professionals
Another viable option would be to approach companies that offer advice and working strategies that can help you improve your mortgage terms. It is advisable to do this only if you stay regular with your payments and don’t try to re-extend the payment period.
Now, a quick look at the benefits of faster mortgage repayment
Real estate analyst Leonardo González believes that one of the main advantages of paying your mortgage faster is that in addition to owning your home faster, you will also be able to achieve better personal finance. Moreover, if down the line you wish to buy a second property, you can avail a new loan with even better terms.
Read – Key benefits of paying mortgages early
Final Thoughts
According to experts, you should keep in mind the term contingencies and let things roll on their own. They say that you can achieve the maximum reduction in mortgage terms if you start making advance payments right from the beginning of the loan. But, of course, everything depends on your financial stability and a regular inflow of income.
More in Loans & Mortgages
-
Why American Consumers Are Falling Behind on COVID-Era Debt
When the world was grappling with the health crisis brought on by COVID-19, the U.S. economy faced an equally formidable challenge:...
November 27, 2023 -
Dr Dre and Ex-Wife Nicole Young Finalise $100m Divorce Settlement
After months of legal proceedings, Dr Dre, the legendary rapper, producer, and businessman, officially brought his tumultuous divorce from ex-wife Nicole...
November 22, 2023 -
5 Tell-Tale Signs That It Is Time to Say Goodbye to Your Current Job
Are you feeling like your job is more like a ball and chain than a fulfilling career? The daily grind, the...
November 19, 2023 -
WWE Signs $1.4 Billion Broadcasting Contract for SmackDown
In an explosive turn of events, World Wrestling Entertainment (WWE) has just unleashed some earth-shattering news for its legions of fans....
November 9, 2023 -
Navigating the Mortgage Maze as Interest Rates Take a Historic Leap
The U.S. housing market is nothing short of a dynamic entity. It evolves, reacts, and sometimes, just like the current real-estate...
November 3, 2023 -
Celebrity Couples Where the Woman Has a Higher Net Worth
In a world where gender roles and financial dynamics constantly shift, it’s not unusual to find celebrity couples where the woman...
October 27, 2023 -
Why the Gender Pay Gap Could Be Worsening
Picture this: Two college students, Alex and Charlie. Both are bright, have the same interests, and are ready to embrace the...
October 19, 2023 -
JC Penney’s Remarkable $1 Billion Revival Plan
In a remarkable turnaround, JC Penney unveiled a bold $1 billion revival plan, breathing new life into a brand that faced...
October 12, 2023 -
Shattering the American Dream: Mortgage Rates, Inflation & Cost of Living
You know that feeling when you are dreaming of something you have wanted for so long, only to watch it vanish...
October 6, 2023
You must be logged in to post a comment Login