Are you wanting to pay off your mortgage early? Looking to get rid of all your debts?
First off, I just want to congratulate you on making this decision! Not many people do, but it’s a decision that can leave you emotionally and financially free!
Here are a few tips to get you on path. Let’s make this dream a reality!
How to Pay off Your Mortgage
Call Your Lender
First, give your lender a call and let them know that you want to take a stab at this. Let them know what your plan is. They can then help you figure out what’s the best realistic option. They can be a key player in helping you along the way.
Have a Goal
Have an exact goal in mind. Be specific. For example, if you want to pay off your home in 5 years from now, make the goal that you’ll have it completely paid off by Summer (or June) of 2022.
Then WRITE THIS GOAL DOWN, and come up with a plan to actually achieve it!
Why is it so important to write it down? Elite Daily reported on a Harvard study focused goal setting. They found that people who write down their goals and had a plan were more successful.
Elite Daily said, “When you don’t have a plan, you don’t know how you will reach your destination. Sure, you know what your destination is and you have a general idea about how you can reach it, but it’s not something that will lead you there for sure.”
Cut Expenses
Paying off a mortgage is no small feet. It’s not just a matter of throwing your “extra” money at it and paying it off in a few years. Most people don’t have that much “extra” lying around. Look at your budget each month. What do you spend your money on? Are there places you can cut back? Do you really need everything you pay for each month?
You may need to make some sacrifices. Sit down and decide what you can do without.
Make Extra Payments
Make an extra payment every so often. You can do this each month, each quarter or even once a year. Maybe you just decide to essentially make 13 payments each year instead of 12. You can then divvy up that extra month’s worth of payment however you’d like. Just by making an extra month’s worth of payment each year you will pay off your mortgage years in advance and will save yourself money on interest.
If you get extra money in a tax refund or a bonus, throw it at the mortgage. Pretend like you never saw it.
This is something you can talk about with your lender. They can help you know what plan would be best.
Refinance
If you don’t already have a fixed-rate, 15-year mortgage, consider refinancing to one. Making it a 15-year instead of 30-year is one of the best ways to put you on track. Or if you have a killer interest rate, don’t refinance and just treat your 30-year like a 15-year. Check out our Refinance options to help you pay off your mortgage.
And here at Sun American, we even offer 10-year mortgages. Let’s find the perfect fit for you!
Downsize
If the kids are moved out and you no longer need a large home, look into downsizing. The money from the sell of your home can help pay for the new mortgage, getting you a head start on paying off your home.
Wouldn’t be amazing to be completely debt free? Would you love to own your home outright? Whether you’re looking to do this soon, or plan to in the future, give Sun American Mortgage a call! We can help you with your home-buying dreams! 480-832-4343
For some more tips on paying off your mortgage early, check out these articles.
Dave Ramsey: “3 Easy Ways to Pay off Your Mortgage Early”
Bankrate: “4 Ways to Pay off Your Mortgage Early and Calculate the Savings”
U.S. News – Money: “8 Ways to Pay off Your Mortgage Years Earlier”
Clark: “6 Steps to Pay off Your Mortgage Early”
