There are a lot of ways in which you can go about eliminating debt. Of course, one of the most common goals that a lot of people have is to pay off mortgage loans that they have accumulated from buying a house. Owning your own home is definitely a more desirable option than renting for a lot of people… though it comes with a price. Unless you have the cash in hand to buy your home outright (which is almost never the case), you are left with only two options. Either you take on a mortgage and go into debt to buy your home, or you decline and continue to rent.
But what can you do once you have purchased a home? Are you really going to be stuck with mortgage payments for the rest of your life, or is there any way to pay off mortgage loans faster, thereby getting out of debt in less time than normal?
Thankfully, there are a number of different things that you can do to get yourself out of debt in less time. In fact, this is a subject that I talk at length about in my book ‘The Money Cookbook’. Of course, getting gout of debt will not generally happen overnight… but it CAN happen. Most people who utilize my DebtBreaker system end up debt free within 7 years, and you can do the same thing!
In this article, I am going to give you 3 tips for paying off mortgage loans early. These tips can help you to drastically reduce your principal, which will be instrumental in cutting down the debt and getting free of mortgage payments, once and for all!
Lower Your Principle By Making Extra Repayments
One of the fastest ways to pay off your mortgage is also one of the most simple… just pay more, and more often! People who apply bonuses from work, tax returns, or other small, regular, or even ad-hoc sums of cash to their mortgage are way more likely to see the principal shrink ahead of schedule.
Look For A Better Interest Rate
Finding an interest rate that is more ‘forgiving’ on a month-by-month basis will allow you to pay more on the principal whenever you make your payment… which is the key to lowering the mortgage loan itself and getting it paid for. Did you know that, in the beginning, most mortgage payments go almost entirely towards interest? By finding a better rate, you will be substantially reducing the amount of money that you will end up having to pay on interest in the long run.
Pay Extra Loan Charges And Fees Up Front
Though it might not seem like it, paying legal fees, Lenders Mortgage Insurance, and your establishment fees with cash when you buy your home will save you a ton of money. While these amounts of money may seem trivial when compared to the size of your mortgage, it is important to remember that the lumping of these fees in with your loan will cost you thousands of extra dollars in interest payments before you end up paying them off.
For more information about Debt Breaker, and to view a free online video, click here or call 0800 332 827.