When it comes to buying a home, the number one thing people are wary about is the amount of mortgage they’ll have to pay monthly, as well as the period it will take to pay it back.
If the payment period is more extended, for instance, the total number of taxes that needs to be paid will also be increased. Some people are lucky enough to find a real estate agent that gets them an incredible deal for their home, but this only ever occurs for a handful of people.
The rest, however, must take out a mortgage, to be able to finance their purchase. While some, more popularly, choose to rent out living space, due to the belief that it would cost less than a house, a house is something that will add up to be a permanent investment in your life. It will also allow you to have permanent residence, should you one day run short on money, or if you’re retired, and can’t afford mortgage rates in the future.
The Best Way to Pay Off Mortgage
If you’re paying off a mortgage, or you plan on taking out one on the house, the first thing you must do, is to try and pay as much as possible, as fast as you can. It will ensure that you’ll be paying it back at a much lower rate than you would if you bought a house with a smaller deposit.
Waiting to buy a house, and perhaps saving up a little bit more, before you choose to purchase it, will allow you better rates monthly, to pay back your mortgage. Also, if you prefer paying higher rates and can afford it, you’ll be able to pay it back in a shorter period, which is another reason why people save enough money for a deposit on their home before they decide to pay back the mortgage.
Can You Pay Off Your Mortgage Sooner Rather Than Later?
Yes, you can. There are, however, a few factors that need to be taken into consideration. These include checking with your mortgage company, if you’re thinking of making extra payments during the month, ensuring that added payments are deducted from the principal balance, instead of the following months’ payment and not hiring a professional to help calculate your mortgage, as it is easy enough to do it yourself.
You can even use an online mortgage payoff calculator to work everything out.
Paying Biweekly Mortgage Payments
Another terrific option to help you keep up with payments is to pay them twice a month.
A biweekly payment plan includes paying half of your mortgage every two weeks. It will allow you to pay 13 full monthly payments a year. While this might sound silly at first, paying one extra payment a year, it could deduct eight years of payments off a 30-year mortgage plan, which will be extremely beneficial to you in the future.