Repay Mortgage Faster with These Easy Financial Recommendations

28 Nov

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thefundamentalist-net-imgWhen you understand that you are fed up with your mortgage and want to speed up the process of its repaying, you need to find a financial source to cover this debt. While this is a great idea, you still need extra money to increase payments to shorten the repayment period. However, it’s also possible without changing your budget. Keep reading if you want to get rid of your mortgage faster. The next easy points will definitely help you become free from your home loan.

Tax Day at Your Service

April 15th is traditionally Tax Day. It’s a time when you can actually make your mortgage payments quicker. You can use your tax refund not for buying a new car, but for paying down your mortgage. It’s a good practice to earmark your tax refund on your mortgage, as it can equal an extra monthly mortgage payment or even two payments.

Large Mortgage Payment at the Beginning

When you choose a long-term mortgage plan with a 30-year repayment period, for example, you spend much time for covering the interest. Only after a couple of years you begin to pay the principal balance. That is why it’s really clever to make large payments at once. This variant is appropriate for these who have an extra source of income and no children yet.

If you don’t have enough funds to cover a large down payment, the smart option is to visit an easy loan site and find a suitable solution. You just need to consider all the options and choose the most appropriate variant with fewer expenses.

The main goal of this strategy is moving to paying the principal as soon as you can. According to this idea, if you are going to buy your first home, you can choose front-loading principal payments. This will help you make your repayment period shorter.

Credit Card Can Help with Your Mortgage Rewards

Using a credit card today has been made very convenient and beneficial for clients. You can get cash back and prizes as a reward for using it. But it’s also your mortgage that can be covered quicker with those rewards.

For example, you can choose the Home Rebate Card presented by Wells Fargo and get 1% cash back on your purchases. This money will be automatically transferred to your mortgage repayment account each month.

For those who already have such a cash back reward card, it’s a good idea to link this cash back the amount to your mortgage payment. So, you will speed up the repayment process without actual spending less.

Make More Payments Each Month

You might think that there is no sense in such suggestion, but keep on reading. When you split monthly payment into several payments during a month, you save some money at the interest. Basically, you borrow less money making your interest lower.

Let’s explain this in numbers. For example, you pay $3,000 each month. Instead, you can make $1,500 payment every 14 days. This strategy will create an extra payment per year. And it’s quite helpful when you are trying to repay the mortgage quicker.

These easy steps can be used to speed up your repayment process and help you cover your mortgage sooner. Some of them can be even implemented without damage to your regular budget, so you don’t need to search for an extra source of income. It’s just a matter of good organization and right financial management.

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