How To Pay Off Your Mortgage Faster In 2013 – Guest Post
Buying a home is the ultimate American Dream. However, the mortgage associated with this dream can become a lifetime problem. In order to successfully manage your mortgage you have to know the market and how you can take advantage of it.
There are a few ways to pay off your mortgage faster. You just have to take the necessary steps to make it possible. Here are some ways to pay off your mortgage faster in 2013.
- Increase your monthly payment:
Increasing your monthly payment is perhaps the most important facet of paying your mortgage off faster. You can increase your monthly payment in two ways; either you start making bi-weekly payments or increase the amount you pay monthly. If you cannot do either, you should at least try to make two or more extra monthly payments per annum.
Not convinced? Validate this tip by using a mortgage loan calculator. Use the amount you can afford and, add it to the calculator, along with all other mortgage details. You will see for yourself how much you could save in long run.
- Set up your budget:
If you want to pay off your mortgage earlier, you should have a budget for your income. This way, you know the amount you are spending each month and, the amount you are saving. The amount you are saving should be divided into two parts, one for the Emergency Fund (EF), and the other towards making your monthly mortgage payment.
- Eradicate Your PMI:
Do you remember the amount you made as a down payment? Did you make a down payment less than 20 percent of the total amount? If yes, then you might be paying a Private Monthly Insurance (PMI).
Talk to you lender and, ask if there any PMI charges applying to you. Sort it out, and get rid of it as quickly as possible. The amount you save after eliminating your PMI should be added into your monthly payment.
- Keep making the same amount of payments even if interest rates fall:
This is an important tip for those who have or want to get, an Adjustable Rate Mortgage (ARM) loan. If the mortgage rate drops DO NOT reduce the amount being made towards your monthly payments. If you can afford it, keep making the payments at the highest rate. You will save money by paying less interest in the long run.
- Refinance your mortgage at a lower rate:
It is a great opportunity for –fixed and adjustable rate mortgage loan borrowers- to refinance their mortgage at record low rates. By refinancing their mortgage at a lower rate, homeowners can save a lot of money. The amount saved, or at least a part of that amount, should go towards paying off the mortgage earlier.
This article is written by Allison K Watkins a mortgage professional. He writes informative articles that help people get mortgage loans -especially people with bad credit. You can read more of his articles on the site Homemortgagewhiz.comYou can also contact her at firstname.lastname@example.org or by following his tweets @allisonkwatkins.