Number Crunch to Live Mortgage Free
Think twice before you opt
for a mortgage that extends fifteen, twenty or even twenty
five years. Instead, check a mortgage calculator and shoot for
a ten-year mortgage to start. By cinching your belt and
cutting back on extras, it is even possible to be mortgage
free in five years or less. How can this happen? In most
instances, it helps if you've made a large down payment on the
home in question, and received a good loan rate.
The best way to pay off a mortgage early is by paying extra on
your monthly mortgage payments. Using a mortgage calculator,
you can determine how much your mortgage payments will be for
the life of your loan. Making extra, regular payments every
month can save you tens of thousands of dollars over the life
of your loan. If you can save $25 extra a month, and apply
$100 extra a month to your mortgage payment, you can save
about $80,000 in interest payments on a $120,000 mortgage!
In addition, using the aid of a mortgage calculator, you can
reduce your loan by ten years! Apply the same basics when you
start with a ten to fifteen year loan and using the same
principles, it is possible to pay off your mortgage and become
mortgage free years before you thought such an event was
If you can't spare $100 a month, even $50 or $25 will help to
house off early. Adding an extra $50 to your payment will save
you roughly $52,000. Not exactly chump change, is it? In
addition, with those extra payments, you'll knock between 5-6
years off your mortgage. Only have about $25 a month to spare?
You'll still save an amazing $30,000 and take off a year on
Finding the extra change is something that most homeowners can
do if they cut out going out to dinner every week to once a
month. Instead of
purchasing meals in restaurants every day at work, try
brown-bagging it. And instead of coveting that new car in the
lot on the corner, save to pay off your mortgage first.
Living mortgage-free will enable you to enjoy those extras, in
addition to obtaining peace of mind, less stress worrying
about retirement and health care costs, and enable you to own
your house free and clear. You can use a mortgage calculator
to play with the numbers, and figure out how much extra will
save you over the life of your loan. With house appreciation,
you may be able to reap even greater benefits if and when you
decide to downsize. You can use the money you've made on the
sale to buy a smaller house outright, leaving your
mortgage-due days behind forever.
Even if you can't be consistent in paying extra every month,
try to pay more than the minimum due whenever possible. Make
up for short months when you can. Even if you like to write
off your interest during tax time, you'll benefit more by
paying your loan off early and living mortgage free. Home
mortgage interest tax breaks may net you about $6,000 in
write-offs, but being debt free is, well, priceless.
A mortgage calculator will help you to determine exactly where
you stand with your mortgage. Even if you've been paying the
minimum payments on your mortgage for years, there's no reason
why you can't start paying extra now. If possible, try to
refinance to a lower interest rate, if it doesn't kick up your
loan too much. In addition, make sure that your mortgage
lender won't penalize you for early prepayment and find out if
they have a cap for the most you can pay over the minimum due
amount. Even though you have a mortgage, doesn't mean it has
to own you. You can take charge of your mortgage and live
mortgage free with a little discipline, a little patience, and
a few extra bucks every month.
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