Transform Your Finances with This Dave Ramsey Mortgage Strategy That Can Save You a Fortune
Looking to pay off your mortgage faster? Here’s a handy tip from Dave Ramsey’s website that could save you a lot of money.
**Extra House Payments**
Making extra payments can help you pay off your mortgage early. But before you start, it’s important to know a few things. First, check with your mortgage company. Some lenders might let you make biweekly payments, while others might only accept payments at certain times or charge prepayment penalties.
If you can make extra payments, make sure to include a note saying you want the extra amount to go toward the principal balance. Otherwise, it might just go toward your next month’s payment.
If you can make biweekly payments, you’ll end up making 26 half-payments a year, which equals 13 full monthly payments. This can help you pay off your mortgage faster. Just be sure not to pay any extra fees for signing up for a biweekly payment plan.
**More Ways To Pay Off Your Mortgage Early**
If extra payments aren’t an option, there are other ways to pay off your mortgage early.
**Refinance:** Look into refinancing your home loan for a lower interest rate and a shorter term. This might mean higher monthly payments, but it could be worth it if it fits your budget or if your income has increased or living costs have decreased since you first got the mortgage.
**Downsize:** This isn’t for everyone, but if you want to pay off your mortgage quickly, consider selling your larger home and buying a smaller, less expensive one with the profits.
**Pack your lunch every day:** Bringing your own lunch instead of eating out can save you about $100 a month, which you can put toward your mortgage. Even an extra $20 a month can make a difference.
By following these tips, you can pay off your mortgage sooner and save thousands in interest.