Every few weeks it seems we come back to a serene scene – one set by fire in a utopia of your choosing – where the mortgage papers that have served the role of a rock in the Sisyphean struggle of your working life are burned on the open flames of your future. Yet before we turn the page of your journey to that most climactic, cathartic, of celebratory chants, there are many, many fiscal safeguards that need to be made. Here are five ways to get to that mortgage burning party fast.
Put any “extra” money toward mortgage payments. This, of course, is easier said than done! Unexpected birthday money, serendipitous gaming winnings and generous work bonuses, as but three examples, can be used to pay down your mortgage . See to it that you are disciplined with this so-called “extra” money.
Stay in the know about your mortgage. This is an easy step to overlook but don’t forget to read up on your mortgage and the market as the months and years pass. It can be too easy to sign your contract and forget to check up periodically on the status of your investment.
Take advantage of lump sum anniversary payment. Most banks will in fact allow you to once yearly make an extra mortgage payment. Even if the lump sum payment equates to a small sum, it can still be worthwhile to take advantage of this option.
Opt for accelerated bi-weekly payments. Now, this can seem like a no-brainer but it is an oft-overlooked move that can be made to see you make payment 26, rather than 12, times per year. BY increasing your payment frequency to accelerated y-weekly payments, you will shave years off the amortization period and, thus, save interest money.
Round-up payments. Finally, it goes without saying that any payment for a large debt like a mortgage should be rounded up. In other words, rather than paying $947, round out monthly payment to $1,000. This a simple way to shorten the months or eventual years you will be pushing the rock up that mountain, only to watch it roll back down!