First Time Homebuyer’s Guide > How to Pay off your Mortgage Faster
How to Pay off your Mortgage Faster
Owning your own home is both exciting and rewarding, but the price tag attached to this freedom can be overwhelming to some. Take some time to put together a plan to pay it off as quickly as possible.
There’s no freedom like financial freedom, plus the quicker you pay it off the less you’ll pay in interest.
ACCELERATED PAYMENTS
Most of us get paid bi-weekly, so why not pay your mortgage bi-weekly as well? In fact, on average, those who choose accelerated payment plans pay their mortgages off 5 years quicker than those who don’t. If you choose an accelerated payment plan, you’ll also pay a lot less interest.
LUMP SUM PAYMENTS
Depending on the type of mortgage you have, you may be allowed to put lump sums toward it whenever possible. If you choose a closed mortgage, you are restricted to a certain percentage of the mortgage value; however, if you choose an open mortgage you have the luxury of making additional payments whenever you want.If you’re lucky enough to receive a tax rebate or an inheritance of some kind, you could put the money toward your mortgage. If you have additional funds, and you’ve maxed out your prepayments, you could always set the extra money aside until your mortgage is up for renewal. Come renewal time, you will be able to put the additional funds toward it without penalty.
CALCULATE
Mortgage Calculator
See how accelerated payments can save you money firsthand. Use our Mortgage Calculator to watch how you can pay off your mortgage faster. Mortgage Calculator >
MORTGAGES
Compare Mortgage Rates
Another great way to save on your mortgage is to get a great rate straight off the bat. Compare Mortgage Rates >
KEEP READING
Renewing Your Mortgage
Your mortgage is only available to you for a set term. At the end of that term you will be expected to pay the remainder in full. If you do not have funds at that time, you will be expected to secure another mortgage. The wonderful thing about mortgage renewal is that you’re not always expected to renew with your current lender. You’re free to shop around, compare rates, and go with a mortgage that better suits your needs. Read: Renewing Your Mortgage >
