Gone are the days where mortgage-free people in America barely exist. With the right tactics and discipline, it is possible to pay off your debts prior to your 30-year deadline.
Here’s how you can get started:
Refinance to shorter term or lower rate
Plan to stay on the same property until you retire? Then you should consider refinancing your loan to a shorter term or ones that have a lower interest rate, Primary Residential Mortgage, Inc. suggests. Ask help from your mortgage company on how you can change your current mortgage plan to a shorter period or one that has lower interest rate.
Instead of paying once a month, you can start paying your mortgage twice a month or every two weeks. Doing so can help you be in control with your expenses while ensuring you pay your mortgage in time.
Additional payments work wonders
Been saving for that LV bag? Instead of finally making that purchase, include those savings as an additional payment for your monthly mortgage. Got your bonus for the year? Add it to your mortgage payment as well. No matter how little, if you add more payments than what you originally need to pay for every month, then your debts will eventually be paid off earlier than you expected.
Live within your means
Finally got promoted? Do not change your lifestyle until you have fully paid your debt. Live within your means and increase your monthly mortgage payment.
With the right amount of discipline, one would surely be able to carry off this guideline. Different people have different methods which suit their lifestyle and financial status, you just need to find yours. Pay off your debts earlier to be able to fully enjoy your retirement, even earlier than you expected.