It may be new information for you that the word "Mortgage" is derived from the two old French words "Mort" and "Gage". Mort means death and Gage means pledge, i.e. a pledge until death. According to the word meaning, "Mortgage" is a loan taken by a person against some asset of same value. However, this mortgage will be a pledge until death for most of the people as they struggle very hard to pay it off within the specified time.
If you can pay off your mortgage sooner than the allowed time, and by doing so you can save thousands of dollars. You can also be free from the stress of having a home loan hanging on your head. This article shares with you some different ways to finance your mortgage faster.
Make your mortgage payment biweekly
Instead of paying every month try to pay every two weeks. You cut your monthly payment and pay the second half in the second half of the month. Although, you pay the same amount, you can stop the interest from accruing as much as when you make a payment once a month. Besides, you can send 13 payments in a year in biweekly payment instead of normal 12.
Pay the same amount always
After some payments, your mortgage rate will reduce automatically. Suppose, you are paying $700 in each interval, after sometime, you have to pay only $ 675 as per the new mortgage rate. But, it is always better to keep on paying the same $ 700. The extra $25 will go to the principal.
Send more money if your income rises
If you get an increment in each year, try to pay the increased amount for your mortgage. It will help you to pay off your loan quickly.
Use lump-sum payment
You can make lump-sum payment at specific time if your mortgage agreement allows it. For example, if you get a bonus check of $5000, you can allocate that to pay off your mortgage.
Shorten the time-span of mortgage
You are able to change your 30 year mortgage to 15 year mortgage to escape from giving more interests. But keep in mind that monthly payment will be higher.
The above described tips and tactics enable you to finance your mortgage quickly.
Different ways to finance your mortgage
By: Ryan Paul
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