4 Tips to Pay off Your Mortgage Quick

Mortgage loan agreement application with house shaped key ringAre you currently paying for your first home? Following are some tips to speed up the payment process.

Have Backup

It’s always a good idea to have a backup plan in case your source of income falls behind. This can be done by having emergency funds set aside or deciding on a mortgage company here in Kingsport that you can go to if times get tough.

The great thing about a mortgage lender is that even if you’re still in debt, the creditor changes so that there’s little chance that you’ll forfeit your home.

Pay More against the Principal

Check out your current mortgage contract and see if you have the option of paying more than the monthly requirement with the option of setting off the extra against the principal.

This means that if you’re paying $5500 every month and $500 of those is only for interest, you can try paying off around $6500 if your finances permit.

The extra $1000 can be subtracted from the principal so that by the succeeding months, your interest rate payments will be lower.

Refinance Your Home

By refinancing your home, you’re essentially reworking the terms of your mortgage so that the conditions may be altered in your favor. This is best done when you have a good credit standing and thus in the position to demand a lower interest rate.

Always Pay Mortgage First

Do not make the mistake of thinking that your mortgage payments are negotiable. Pay them before they come due – otherwise, it becomes a slippery slope towards losing your home privileges. Once the money comes in, pay the absolutes first like mortgage, insurance, and car payments.

Adjust your consumption with what’s remaining.

Mortgage payments should be taken into consideration before you actually start the home-buying process. Ideally, you should have some amount set aside for the next six months of mortgage payments for emergency purposes.