Do you feel like you have an endless task to pay off your mortgage? Even if you are keeping up with your monthly payments, it will take between 15 and 30 years to meet the financial requirements for your home. This investment is important for your family, but it can feel like you will never make it to the finish line.
Trust us though… with consistent work and regular payments, you will be able to finish your mortgage and enjoy this investment for your family! If you want to enjoy the reward of no house payments, then you might consider increasing the amount of money that you are paying each month.
Benefits of Extra Mortgage Payments
Even though you are only required to pay a specific amount on your mortgage every month, there are obvious benefits to sending extra payments. A faster payment cycle will speed up the time that it takes to pay for the property. Additionally, you can save thousands in interest.
As you understand these benefits, you will find the motivation to ramp up your payments to optimize your results! Talk to a financial professional to understand exact details about the interest costs that you are paying, and you will see why it can be beneficial to adjust your budget so that you can come up with an extra payment every year.
How Will the Payment Impact Your Mortgage?
Crunch the numbers, and you will see that an extra payment could save you several years of mortgage costs. For example, if you have a 4% interest rate on a $150,000 mortgage, then one extra payment each year could decrease your payment time by four years or more.
Not only will you speed up the payment time, but you will also save thousands in interest costs that you pay overall.
Tips to Come Up with the Money for an Extra Mortgage Payment
Now that you can see the benefits of speeding up your payment schedule, the next step is to find a way to come up with the extra payment every year. Here are a few things to consider:
- Adjust Spending Habits: Look at your budget to see if there is anything that you can change to save a little money. For example, if you skip a cup of Starbucks and brew your coffee at home, then those savings can add up. Save the money from a $5 cup of coffee three times a week, and you will have an extra $780 at the end of the year.
- Set Family Goals: If you are trying to come up with the extra cash, then you need to work with your family. Talk about options that can be used to save the money that is needed for the extra payment to save thousands in interest over the lifetime of the loan.
- Work a Few Extra Hours: Consider your hourly rate and see how many hours you will need to work to earn the cash for an extra payment. One extra hour in the office each week could generate the cash that you need.
At DUFFY Realty, we are here to help you find the home of your dreams. Call us for more information about finding and financing the perfect home for your family: (678) 318-1700