Paying off a mortgage is one of the biggest financial goals that we all face as homeowners. Essentially, to pay off your home loan you have to reduce the principal owing on your property.
Whether you're nearing retirement age or just looking for ways to reduce your home loan debt as quickly as possible, here are eight great tips for paying off your mortgage faster!
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Increase your Home Loan Repayments
Increasing monthly repayments on your home loan by the smallest amount can take years off the life of a mortgage.
- Reduce your Mortgage Interest Rate
One of the biggest opportunities to pay off your mortgage faster is to find a cheaper interest rate from the start. The key is to find a home loan that offers a low interest rate with lower fees - your Classic Home Loans originator can help you with this. They will explain all about mortgage reduction strategies, how to achieve a low interest payment and how you can reduce or eliminate mortgage fees.
If increasing your monthly mortgage payments is not an option, you can still pay off your mortgage faster by refinancing your mortgage to negotiate a lower rate. A Classic Home Loans refinance mortgage home loan is invariably the best option to get you out of this costly situation.
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Make Extra Home Loan Repayments Early
Our Home Loans do not have any Prepayment Penalties. This allows you to make extra mortgage repayments. Any extra mortgage repayments that you make from the very beginning, such as making your first repayment on your settlement date, all goes towards reducing the principal on your home loan and minimizing interest payments.
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Pay a Lump Sum on your Mortgage
All of our home loans allow you to make lump sum repayments. Another way to decrease your mortgage principal and pay off your home loan faster is by making a large lump sum payment. If you have come into extra money (eg. tax return time) or have a considerable amount of savings, this may be a wise financial decision. It will also dramatically decrease the amount of interest you will pay over the life of your mortgage, saving you money.
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Stay in touch with your Classic Home Loans Originator
Over the life of your home loan, there will be numerous changes both in the home loan market and to your personal financial situation. Make sure you keep in touch with your Classic Home Loans Originator regularly to help you stay informed.
The satisfaction a homeowner feels when making that final mortgage payment is really unmatched by any other financial achievement. Following these simple steps to paying off your mortgage can help you make that dream a reality real quick!
Contact your mortgage originator for clear and easy advice about the fastest ways to pay off your mortgage. We'll help guide you through the loans and mortgage maze!
