5 Tips to help you pay off your mortgage sooner.
Like most homeowners, you're probably eager to pay off your mortgage as quickly as possible. The good news is there are tried and true strategies you can use to chip away at your home loan faster. Whether you want to save tens of thousands in interest or be mortgage-free sooner, these universal mortgage reduction methods can help.
Pay More Often:
Opt for weekly or biweekly instead of monthly payments. This will help reduce the interest overtime, resulting in possibly the equivalent of one extra mortgage payment per year. You'll pay down the principal faster without having to come up with a large lump sum.
2. Direct Your Income
Direct your income to be paid into your offset account. Put your hard earned money to work hard for you to minimise your interest.
3. Refinance
Refinance at a lower interest rate. Rates fluctuate over time and economic cycles. If you can get a lower rate by refinancing, you'll reduce your interest costs and pay off your mortgage quicker. We can help you run the numbers to see if it makes sense for your situation. Lock in the lowest rate on the market.
4. Make Extra Repayment
Any lump sums you are expecting to come in, such as tax returns or bonuses can be contributed towards your mortgage principal. It's a great way to make a big dent. Make it automatic if possible so you never see the money hit your everyday spending account.
5. Investment
Leverage your home's equity for investing in other assets that can generate ongoing income. If you can take the positive monthly cash flow from your investments and put it toward your original mortgage principal, this will boost the speed of your paydown compared to just making normal payments.
Owning a home is a major achievement. Paying it off faster maximises your investment and savings. Contact the team at Investors Mortgage to explore your personalised mortgage payoff options. Our experts are ready to help you to build a faster path to being mortgage-free. Book your appointment today!
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