Do you want to pay off your mortgage faster?
Some people think that you have to stick to your mortgage payments for a specific amount of years no matter what you do. However, that isn’t necessarily true.
You can in fact shave off years from your mortgage payment if you do specific things that will allow you to pay off your mortgage quicker. In this article, we’ll examine the best ways to pay off your mortgage faster.
6 Best Methods to Pay Down Your Mortgage
1. Pay more each month
It might seem obvious, but not many people know this. You can pay an additional sum each month to your regular mortgage payment. Even an extra $50 per payment adds up over the years.
The first method is to increase your monthly payments. You should be able to raise your payments by a certain amount each year. Check your mortgage contract first. If you increase your payments by more than your prepayment privilege allows, you may run into penalties.
2. Utilize your salary raise
If you’re about to get a salary raise or you get a better-paying job, then you should consider applying that extra cash to your mortgage to reduce it.
This shouldn’t be too hard to do as you’re likely used to your previous salary lifestyle. Plus, you’ll get rid of your mortgage a lot faster.
3. Double down on your payments
One of the best ways to pay off your mortgage faster is to double down on your regular mortgage payments in any given year. By paying double the amount that you typically owe, you can shave thousands of dollars and years off your mortgage payment.
4. Take advantage of a tax refund
If you get a tax refund, you can use that money to pay down your mortgage at a faster rate.
5. Use any unexpected money
If you recently came into some unexpected money from an inheritance or a lottery ticket, use that sum to pay off your mortgage faster. One thing to keep in mind is that every lender and mortgage have their own payment terms.
Some allow as much as 20% lump-sum payments, while others don’t. So, if you want to avoid penalties and end up paying more for your mortgage than necessary, then you better check your mortgage contract details.
6. Obtain a lower interest rate
Your mortgage contract renews early, and when you renew it, you may be able to get a lower mortgage rate. Make sure to discuss the interest rates with your lender every time you renew your mortgage contract.
Call the Professionals at Northwood Mortgage
These are just a few of the things you can do to pay off your mortgage faster. If you want to know every possible option, however, then you need to work with mortgage experts like Northwood Mortgage.
We’re one of the GTA’s largest brokerage firms, providing unmatched service while ensuring complete customer satisfaction and helping you get a low mortgage rate in Ontario.
If you want to learn more about how you can get a low mortgage rate in Ontario, call Northwood Mortgage today at 888-492-3690 or get in touch with us here.