9 Ways to pay off your mortgage early and without realizing it

Pay your mortgage early about 26.9 million Americans own their own home according to a study conducted by the Urban Institute in the United StatesSome of these people have bought their home with cash and cash, some others lowered their mortgage with each passing year until it was paid off.

Although it should be noted that two thirds of Americans have not been able to pay it and therefore had the need to resort to a mortgage so that they can buy their home, It may seem impossible to do, but here you will know some ways to pay your mortgage early and you will not even realize it thanks to advance payments on principal.

Look at these 9 ways to pay your mortgage early and without realizing it

1. Refinance your mortgage or pretend you have

It is difficult to obtain a mortgage that is easy to pay, although there are some mortgages that are subject to a variable interest rate and with a long period of time, such as 30 years to be able to pay it.

The only thing you could do with this option is to refinance the mortgage and thus convert it into a loan payable over 15 years.or if it has a good interest rate but that you do not want to lose, do not change the time period but you can pay said loan as if it really were for 15 years.

If in the end you decide on this, remember that if you pay your mortgage loan it is difficult to refinance the mortgage paying an amount less than what you pay in interest, also changing the type of rate.

2. Don’t take on more of a mortgage than you can afford

If you want to search for a home and immediately contact a real estate agent You must first be financially ready to meet the complicated commitment of paying a mortgage.

You can make a list of different affordable housing options that are easy to afford and meet your needs, plus if you want you could move to a state where there is a low cost of living, this is good if you have a job that you can do anywhere.

3. Reduce the square meters

Big houses are the best.or so many people think since they opt for such a large place, however, mortgages are usually more expensive, although if you want to get rid of your mortgage you can sell your current house and invest the money in a smaller houseless expensive and cash.

If you have bought a house that is not so expensive you can even have a little of the investment and thus deposit it in a certificate of deposit and a savings account for a better return.

4. Create a savings goal

It is a good option to make a budget for annual expenses and leave the rest to the monthly payment of your mortgageyou have to take all the expenses that you may have, for example, the payment of taxes, car verification, etc.

When you do this, it will allow you to pay the mortgage faster, in the same way it will help you to see the expenses you have and save in a better way, thus avoiding falling into bankruptcy in the future.

5. Advance principal payments while the first credit processes are in progress

Suppose you are paying a monthly fee of $100of which $10 will go to principal and the other $90 will be interest payments, if you pay $100 more, that amount will lower your mortgage debt 10 times more than the initial monthly payment.

It should be noted that interest on a debt is calculated on the value of the remaining principal balance, This means that the more your principal balance has gone down, the more your interest will go down.

6. Invest the bonus

You have to make a budget first so that that way they can cover the expenses at the end of the year with other resources that you might have, this will allow you that when the Christmas bonus arrives you can allocate it as an extra payment to your mortgage.

To do it successfully you have to save a lot beforehand, or buy Christmas gifts.

7. The technique of 1/12

This technique institutes the payment of an extra twelfth of the monthly figure that you must pay per month, This means that if, for example, you pay $9,000 per month, then you pay a little more, like $9,750. and these $750 are the twelfth part of your normal monthly payment, so you will have already paid an extra month of monthly payment at the end of the year without realizing it.

8. Always take lunch with you to work

You may be wondering what lunch has to do with paying my mortgage, well too much because the money you spend on lunch can be vital, Let’s assume that you spend about $100 on your lunch, if you decide to save this money you can have an extra amount to pay your monthly mortgage.

By paying this extra amount that you usually spend on lunch, you can pay off the mortgage loan faster than you think and when you least expect it, this is a good idea since many workers usually buy their lunch there.

9. Biweekly payments for your mortgage

Finally, the biweekly payments are quite good in case you cannot afford the extra payments once a month.making these payments can reduce the amount of time you have to pay the mortgage although it depends on the interest rate of the loan.

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