Thursday, 20 April 2017

Ideas to pay off the mortgage faster

Dear Visitor, 
thanks for dropping by.
My mortgage is less than $100,000 from last year onwards. I was thinking of ways to pay it off faster. 
Turns out, there are few methods to think about.

First of all I asked my lender to make it bi-weekly. That was done couple of years before. Now, this month I asked them to increase my bi-weekly payments by 10%. (I believe you can make it up to 15% . Just ask your lender.)
I have an option to pay a lump sum of up to 15%  of the original mortgage amount. This payment will go directly towards the principal. The minimum amount of this annual lump sum is $100.

The next one is the option to double up your regular payment of principal and interest once a year. 

I used the lump sum payment  option  in 2015. Since 2016 was hard on us, we didn't do that.  This year I am going to do at least $100 towards the principal. 

Do you have any other ideas to pay off mortgage faster? Please share your mortgage stories with me.




2 comments:

  1. You seem to have all the bases covered. Once our principal was less than 100,000 we ended up converting the mortgage to a secured line of credit (secured against the property just like a mortgage). It offered a very low interest rate and we could apply as much payment to it per month as we wanted. Hubby was making the most of his life at that time so we were able to pay it down really really fast, although unless you are certain you will always make large payments each month not sure I would do that. What about selling household items and taking the amount for your lump sum against the mortgage? That is an easy way to come up with a little extra money that doesn't really come out of your budget and almost everyone has stuff kicking around they no longer need or want

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    Replies
    1. Thank you for giving more ideas. Initial thinking was to use the tax refund towards mortgage lump sum payment. It didn't work last year. It can work this year. Selling stuff online is another idea to think.

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