Having a home of your own is one of the most exciting things in life. It’s a little less exciting when you look at your mortgage debts. Homes are expensive – so expensive that some mortgage loans last for decades. If you don’t want to spend that long paying off that loan, you’re going to need to be a little more ambitious and motivated. It’s possible to pay off your mortgage much earlier than expected and get rid of that debt hanging over your head.
Don’t Live Beyond Your Means
The easiest way to pay off a mortgage in a timely manner is to avoid purchasing a home you can’t actually afford. Some lenders will prequalify you for a home loan, but that loan is actually the most you can swing. Set your budget at a point substantially less.
The same goes for things like cars. Do you really need to lease a shiny new luxury car when something safe and reliable will do? You’ll spend a lot less on your car payments and have more money to put towards your mortgage.
Create a Better Budget
Meeting your financial obligations early will usually involve freeing up more money. This means you need to keep a great budget. If you don’t already have an app or software that helps you manage your finances, now’s a great time to get one. When you’re used to figuring out your utility bills and fixed payments, it’s easy to see what you have leftover for groceries and other expenses. How much more can you cut out of that for your mortgage.
Make Some Extra Income
If you can’t get a second job, consider dabbling in the gig or freelance economy. The gig economy calls for delivery and cab drivers who can work whenever they have free time. The freelance economy is great for people who have any skill that can be delivered via the internet, like copywriting, coding, or web design.
You can also use the internet to rent out things you aren’t using, from bicycles to spare bedrooms. You can sell things you may not ever want again, and put that money directly towards your mortgage. It might be time to go through all that old furniture you have in storage and help it find a new loving home.
Be Smarter With Your Savings
Putting your money in a high interest savings account is always a great idea, but it won’t give you a lot of money that you can access quickly. Trading or investing may be the best way to help your savings work for you. There are a variety of trading and investing methods and options – you just need to choose the one that works for you. Forex trading is a great option for beginners who only want to invest a little bit. You can scale up your efforts once you become comfortable.
Round Your Payments Up
If your mortgage is $672 a month, would paying $700 break the bank? While it may not seem like much, that extra $28 a month is like a whole extra month every two years. If you have a 20 year mortgage, merely rounding up your payments (without paying above and beyond that number), you can pay off your mortgage ten months early. That’s almost an entire year ahead of schedule.
A mortgage is a huge commitment. While you may not be able to pay it off in the blink of an eye, throwing down some extra cash when you have it can shave years away. Once your home is paid off, you’ll have plenty of extra cash to vacation or pursue new hobbies with.