Tips on How to pay off your mortgage sooner without breaking your buget
There are many ways a person can payout their mortgage sooner. Some expert stated that if you could put $5000 to 10,000 per year extra than you will notice a major difference. However, while that would be nice, if people could afford to put the extra 5k to 10k. But if you are like me and live paycheck to paycheck this may be harder than it looks.
Here is my sure way to save you thousands of dollars of interest and you will not break your budget. Start by increasing your payment between 2.5% to 5%- if that is not possible, even a 1% increase will make a major difference. I personal have increased, in the last 5 years, my mortgage payment between 1% to 5% each year. When I started doing this, I did feel the pinch of the extra increase in the payment, but after while, my new mortgage payment became my regular mortgage payment. By doing this, I was able to reduce my mortgage in the first year by 3.5 years. since I have increased my mortgage by 5% the 1st year, 5% the 2nd year, 2.5% the 3rd year and 4th and 5th year I have increased the payment by 1.5% I have reduced my whole amortization from 30 years to 12.5 years. that is an incredible reduction and my total savings for the term of my mortgage over $110,000. WOW!
Take a look at your mortgage payment and see if you could increase even by as little as $10 dollars per mortgage payment will make a difference on how much interest you are paying. if you require more info on these or other mortgage tips, please feel free to contat me email@example.com
Posted by Vittorio Oliverio
on December 19, 2012