‘Never a lender nor a borrower be’ is the old adage, and while it’s still true in many regards, the simple fact remains, you can’t really get a house just on savings alone. It’s simply not possible for the majority. Living in rented accommodation isn’t a good option long term either, being that it’s simply a waste of money.
No, you need a mortgage, but do you need to pay all the interest? Not if you pay it off early. Here’s more reasons to get your mortgage paid off early, and some ideas how.
Obviously, you should be trying to pay off your mortgage as quickly as you possibly can, anyway. No one likes watching a chunk of their income disappear every month, and once you fully own a property, everything becomes a lot cheaper, and you can save much more easily.
Homes basically go through three stages, first off, you’re a renter. You’re paying someone else’s mortgage to live in their property, and while that’s a fine arrangement, you’re treading water. The money you’re paying in rent is dead money. It gets you nowhere. Which is why it makes sense to get a mortgage on a property, and instead of paying off someone else’s mortgage, you’ll be slowly buying your own property.
There’s just one problem, mortgages are not free. The interest charged for mortgages is dependent on how long you take to repay it, and if you take the full period of years or decades, you could be paying tens of thousands more than you could be, if you don’t take the chance to pay the mortgage off early.
It’s good to fully own your own house, there’s really no other way of saying it. While it’s technically yours during the mortgage, it’s still partially someone else’s, and debt is no fun thing live under. Once it’s yours, it’s a huge resource. Should you ever need to, you could sell up, or re-mortgage. You’ve got tons of options when you outright own your property.
And once you’ve seen those mortgage payments stop leaving your bank account every month, you’ll have a lot more disposable income to do what you want with. Ideal, right? So how can you pay it off early?
How to Get Rid of That Mortgage
Firstly, you have to check with your mortgage company, as some might not allow for extra payments. Then, once they’ve given you permission, you could try biweekly payments, instead of weekly or monthly. If you were really keen on getting that debt done away with, you could even downsize property, and use the parts of the mortgage which you’ve paid off to buy somewhere new.
That can be ideal if the kids have grown up and moved away, or if you’ve just got more space than you need. If you’re selling your property than you need to be aware of certain things, like whether it’s a good time to sell, you need savings, and what kind of property would be right for your needs.