3 tips for paying off your mortgage faster

Paying off your home can seem impossible, especially if you’ve recently been saddled with a substantial mortgage. Here are three easy tips for paying off your mortgage faster.

1. Increase your payment frequency
If you initially chose to pay your mortgage monthly, contact your lender and ask if you can switch to weekly or bi-weekly payments. This simple change is equivalent to paying one extra monthly payment each year. For example, an additional $1,500 per year means you’ll pay off an extra $30,000 over 20 years.

2. Add to your payments
If your current budget allows you to make larger payments toward your mortgage, don’t hesitate to make the adjustment. You’ll pay off your loan faster and save on interest. Check with your creditor to find out what terms and conditions apply.

3. Make prepayments
Did you get a generous bonus or sell your classic car? You can use this influx of cash to pay off your mortgage faster. Be aware that your contract may stipulate a maximum lumpsum amount. If you go over this threshold, you may have to pay a penalty. Therefore, check with your lender to determine how much you can put down.

Contact a mortgage broker or financial advisor for personalized advice.