It often seems that as soon as you pay off your mortgage, the rest of your life can begin. It’s like taking a fresh breath of air.
The hefty monthly payments that accompany homeownership don’t have to stick around forever, and there are many simple ways that you can get that mortgage paid off in much less than 30 years. Here are 3 easy ways to own your Texas home outright and be mortgage-free in no time at all.
Refinance Your Mortgage Loan
It’s always a good idea to keep an eye on mortgage interest rates, and right now they are historically low. Rock bottom rates mean it’s a great time to refinance. Refinancing is when you work with a lender, either a new one or your existing one, to pay off your old loan and originate a new loan with new terms. Sometimes there are costs associated with a refinance, but many lenders offer a no-cost refinance. It might seem like a hassle so many people avoid it, but even a .1% reduction in your interest rate can save you thousands of dollars in interest over the life of the loan and reduce your monthly payment too.
While you’re looking into a refinance on your loan, check with your lender about a 15-year mortgage option instead of the traditional 30-year. Your monthly payment will be more, but it’s a myth that your mortgage will double. A 15-year loan will save you a lot of money in interest and cut your loan time in half, so if you’ve got extra income each month it’s a great option.
Pay Extra Every Month
Many homeowners don’t feel like they have enough extra every month to refinance to a 15-year mortgage, but some months they do end up with a surplus. In these situations, paying extra on the months that you have a surplus can be a great option. Most of the time, extra payments go straight toward the principal balance, shrinking it much faster than your standard monthly payments that largely go toward interest. You’ll need to notify your lender ahead of time to let them know you’d like the entire extra payment to go toward principal. Otherwise, they might apply it toward next month’s payment and you won’t save nearly as much money.
Try These Extra Payment Methods
If paying extra on your mortgage each month seems difficult, here are a few options to make it easier:
- Try the dollar-a-month plan. If your mortgage is $700, pay $701 the first month, $702 the next month, $703 the month after that, and so on. This method could cut years off of your mortgage loan.
- Use any unexpected income as extra mortgage payments. Tax returns, bonuses, and credit card rewards are some easy options to make extra payments without cutting into your monthly budget.
- Pay off your mortgage early by rounding up your monthly payments. A $875 mortgage payment, for example, could easily be rounded up to $900. You’re not likely to miss that extra $25 each month but it will save you money and get that mortgage paid off faster.
Joe HomeBuyer Dallas is Here
Mortgage payments got you down? Joe Homebuyer Dallas is here to help! We can help you pay off your mortgage by buying your home for cash. We buy houses in Dallas, Texas, and the surrounding area in any condition and will make you a fair cash offer in as little as 24 hours. Selling to us really is that easy! Get out from under your home mortgage and start fresh with Joe Homebuyer Dallas. Contact us today for your cash offer!