Whether you have two or twenty years left on your mortgage, you may be eager to get out of debt early for a little stress relief or to increase cash flow. A mortgage payoff calculator can help demonstrate how to reach your payoff goal by showing you how much more principal you’ll have to pay and how much interest you’ll save. Consider these tips to help you pay off your mortgage in 2021.
Put extra money towards your payments
The most basic way for you to pay off your mortgage early is by making extra cash payments towards your principal balance. A principal balance is an amount you owe minus the interest. Using a mortgage payoff calculator, you can figure out how much extra cash you should be putting towards your principal balance to completely pay it off.
You’ll save years of built-up interest by making larger payments. Some people can achieve this goal by making bi-weekly payments or double monthly payments. Ask your mortgage handler how to set up bi-weekly payments if you qualify. If your balance is quite significant, you may have to pay more than double, according to what your payoff calculator indicates. Additionally, you can try to make extra payments each quarter or year.
Refinance your loan
Pay off your mortgage sooner by refinancing to a shorter term. You’ll lower the amount of interest you’re paying and reduce the years on your mortgage. You can do this through various forms of refinancing options. Some options allow early repayment flexibility which allows you to refinance without penalties. Figure out how refinancing can help you pay off your mortgage using a payoff calculator.
VA-backed mortgages may be eligible for an interest rate reduction refinance loan (IRRRL), which helps veterans refinance their current loan with one under different terms. To be eligible for an IRRRL, you must already have a VA-backed loan that you are interested in refinancing, and you must certify that you live or used to live in the home covered by the loan.
Whether you are retired with extra space or haven't thought down the road about how much space you have, you could save money by downsizing your home for optimized space and increased chances of paying off your mortgage. While moving into a smaller home may feel like you are reversing your progress, you’ll end up saving money, making it easier for you to make larger payments. If you only have a few years left on your current mortgage, you may be able to downsize and purchase a smaller home out of pocket with the sale of your current home.
Apply a lump-sum payment towards your principal
You can consider making a lump-sum payment towards your principal if a large amount of money happens to land in your hands, or checking account. Anytime you receive a large payment, bonus, or inheritance, contact your mortgage servicer to put it towards your principal.
Get advice from an expert at Atlas Crown Mortgage
If you are searching for mortgage refinancing options, we have the experience, knowledge, and technology to help you shorten your loan by years with our refinancing options. We have access to available products from 75 different lenders, and we are eager to help you decrease the stress of having a long-term mortgage.
With over 25 years of experience in the mortgage industry, we know how to make the refinancing process easier by streamlining the process with limited paperwork and more time for you to enjoy your life. You can count on us to uphold our expert reputation and quality of customer experience.
We’ll use our one cutting edge mortgage payoff calculator with your current mortgage and financial data to help you refinance. You’ll also be provided with all available options, and we’ll work with you to choose the best package for your unique circumstances and goals.
For a free consultation or more information, contact, or call us today!