• Home
    • Resource Library
  • Blog
  • Free Primitive Patterns
  • About
    • Privacy Policy
    • Terms of Use
  • Contact Us

Prim Mart

For Home, Garden, and Lifestyle

  • The Home
    • Decor & Design
    • Cleaning & Organizing
    • Buying and Selling Homes
    • Electrical & Energy Use
    • Heating & Cooling
    • Home Appliances
    • Pest Control
    • Plumbing
    • Roof Maintenance
    • Security
    • Tools & Equipment
  • Outdoor Living
    • Gardening
    • Landscaping
    • Lawn Care
    • Patio Decorating
  • Art & Crafts
    • Craft Tutorials
  • Food
  • Lifestyle
    • Family
      • Parenting
      • Pets
    • Beauty & Fashion
    • Finances
    • Education
    • Fun
    • Legal Matters
    • Technology
    • Car Care & More
    • Celebrations & Holidays
    • Safety
    • Shopping
    • Travel
  • Wellness
    • Dental Health
    • Diet & Fitness
    • Holistic Health
    • Mental Wellness
    • Physical Health
    • Self Improvement
  • Work & Business
    • Business Tips
    • Business Marketing
    • Office Design
    • Building Upkeep
    • Career Training
    • Work at Home
Home » Lifestyle » Finances » Paying Off Your Mortgage: 3 Ways To Do It Fast

Finances · February 4, 2021

Paying Off Your Mortgage: 3 Ways To Do It Fast

Your family has a house that it can call home, and all is well in your world. However, you still have the burden of a hefty mortgage lingering over your heads. You understand that it was necessary to buy your home, but it’s reached a point where your mortgage is getting hard to handle. One option that many take is to sell their mortgage to a trusted note buyer, which allows you to make a promise to repay a specified sum of money plus interest at a specified rate and length of time to the note holder. Others may take a more standard route, but you may find yourself making payments for many years. Standard mortgage repayments can take over a decade to repay, which can leave you wishing you could just pay it off as quickly as possible and be done with it!

Paying Off Your Mortgage: 3 Ways To Do It Fast

That raises a question: how can you repay a mortgage as quickly as possible? Realistically, three different options present themselves to you. The unique thing about these options is that there’s one for just about anyone. As you go through and read about each one, that statement will start making more sense. So, without further ado, let’s take a look at the fastest ways of paying off your mortgage:

Increase your monthly payments

When you agreed to your mortgage, you signed a contract that stipulated you’d pay x amount each month for a specific period of time. This is very basic loan repayment stuff, and it basically helps you figure out your monthly payments and how long it will take you to be free from your loan. After a few years, you may realize that you’re not paying enough. Or, more accurately, you’re not paying as much as you probably could. This tends to happen if your source of income increases or you start saving more money and being a bit more financially savvy as a family. Either way, you realize you’ve got some extra money that could go towards the mortgage payments.

In this case, contact your mortgage broker Malvern or whoever handles your mortgage may have been transferred to, and speak to them about increasing the monthly payments. As long as it doesn’t have a negative impact on your life, this is a smart idea to reduce the mortgage terms. By paying more every month, you’ll require fewer months before the entire mortgage is paid off. Plus, if your career keeps going in an upward trajectory – or your partner gets a better job – you may be in situations where you can pay even more every month! Again, contact the lender and get the deal restructured so you can increase your payments yet again.

Theoretically, this is a genius way of shaving many years off your mortgage. There are only two downsides to this: you will still have years to go before the mortgage is paid off, and it only works for people that are earning more money. If you’re having issues with your mortgage due to a lack of funds, then this isn’t a viable option for you.

Refinancing

Next up, you can pay off your mortgage fairly quickly when you start refinancing it. Firstly, what on earth does this term mean? Simply put, home loan refinancing is when you take out another mortgage to pay off your original one. In that sense, you can technically pay off your first mortgage all in one go.

The reason refinancing exists is that it lets people have access to more affordable mortgages. If your current mortgage was on a fixed rate for the first three years, the fourth year may bring a substantial increase to the interest rate. Without trying to get too complicated, this basically means the mortgage costs more because you’re paying more interest. So, you can refinance this loan with another one that has much better interest rates. Therefore, you save money overall when paying off your mortgage.

Also, there’s a way of using refinancing to keep switching loans after the fixed interest rate is up. If you do it correctly, you can end up shaving lots of years off your mortgage, and save lots of money in the process. Unfortunately, I’m not a financial expert, so you won’t get this information from me. Just Google refinancing or remortgaging, and you’ll find loads of tips on how to use this method to pay your mortgage as quickly as can be.

Again, the downside of this idea is that, while you do shave off some years, it still doesn’t offer a short-term solution. The plus side is that it’s a great option if your current mortgage is too hard for you to keep up with. You can switch to another one with a better interest rate, meaning you can keep up with the payments. Technically this can also stop you from falling behind on mortgage payments, which would only drag out your loan even longer.

Sell your home

Finally, the quickest way of paying off your mortgage is by selling your home! Granted, you might not want to sell your family home, but it may be necessary if you’re struggling with the mortgage. The good thing about this is that house prices generally increase with time. Plus, any improvements you made to your property will up the price from when you sold it. Therefore, you could sell it for a profit, paying off your mortgage with these new funds. However, you may have enough money left over to afford a new house.

Consequently, you can move into a new house without needing another mortgage – or possibly getting a small one that can be paid in a couple of years. This method works best when you’re thinking about downsizing or moving to another country or city. In either of these cases, the cost of a new home could be substantially cheaper than your current one. Thus, after the sale and the repayment of the mortgage, you have more than enough to get a new home.

Mortgages aren’t the most enjoyable things to talk about, but most of us have to deal with them. If you’re sick and tired of the burden of your mortgage, these three tips should give you some new ideas. Look back through them again, do some extra research if you need to, then consider which one is best for your current situation. Whichever one you pick, it’s sure to help you repay your mortgage much faster than at the current rate.

Spread the love

Posted In: Finances

Never miss a post!

You’ll Also Love

Super Fund Facts - 5 Things Every Australian Should Know About Superannuation (A)Super Fund Facts – 5 Things Every Australian Should Know About Superannuation (A)
Need Monetary Help? Learn These Smart Ways To Get Instant CashNeed Monetary Help? Learn These Smart Ways To Get Instant Cash
Car Accidents And Personal Injury Claims
Next Post >

California’s Best Bike Paths

Search

Hello There!

Welcome to Prim Mart! I'm Katharine, a mom, wife, and blogger with a passion for all things related to homemaking and enjoying life. Prim Mart was founded in 2001 and has grown from just a craft blog to an online lifestyle magazine filled with helpful and creative articles for you!

AntiqueFarmHouse
300 X 250 banner

Archives

Categories

Garden Tower Project

Copyright © 2023 Prim Mart · Theme by 17th Avenue

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Read More

Accept Decline Cookie Settings
I consent to the use of following cookies:
Cookie Declaration About Cookies
Necessary (0) Marketing (0) Analytics (0) Preferences (0) Unclassified (0)
Necessary cookies help make a website usable by enabling basic functions like page navigation and access to secure areas of the website. The website cannot function properly without these cookies.
We do not use cookies of this type.
Marketing cookies are used to track visitors across websites. The intention is to display ads that are relevant and engaging for the individual user and thereby more valuable for publishers and third party advertisers.
We do not use cookies of this type.
Analytics cookies help website owners to understand how visitors interact with websites by collecting and reporting information anonymously.
We do not use cookies of this type.
Preference cookies enable a website to remember information that changes the way the website behaves or looks, like your preferred language or the region that you are in.
We do not use cookies of this type.
Unclassified cookies are cookies that we are in the process of classifying, together with the providers of individual cookies.
We do not use cookies of this type.
Cookies are small text files that can be used by websites to make a user's experience more efficient. The law states that we can store cookies on your device if they are strictly necessary for the operation of this site. For all other types of cookies we need your permission. This site uses different types of cookies. Some cookies are placed by third party services that appear on our pages.
Cookie Settings