How to pay off a 30 year home mortgage in 5-7 years
How to quickly pay off the mortgage
The advantages are obvious: firstly, the shorter the term, the lower the amount of interest that you pay to your uncle, i.e. the cheaper the loan. Secondly, the released funds can be profitably invested and earned income. Thirdly, by paying a loan, you can freely dispose of your new property, say, an apartment.
Even before entering into an agreement, you should make sure that the possibility of early repayment is provided for in it and that the bank will not penalize you for this (and this happens).
Calculate how much you can increase regular payments. If at the moment the financial situation is favorable, then even a small (by 10-15%) increase in regular payments can save you up to 10 years mortgages and save tens of thousands of dollars (after all, mortgage amounts are usually rather big).
If, for example, you sold an old house or a car, you can make a one-time substantial payment, reducing the amount of the principal debt, which will also have a positive effect on the future situation and, if you save monthly payments, it will shorten the mortgage term (and, therefore, its cost).
Remember that in all these cases the bank is obliged to re-calculate your payment schedule. If you are offered a choice of reducing the time or size of regular payments, choose a reduction of payments, and use the money freed up again to repay the principal debt.
Keep in mind that the size of the principal debt affects the size of the annual insurance premium, so by reducing the amount of principal debt, you get savings here too.
And finally, remember that early repayment of loans is unprofitable for banks, so go back to point one and make sure that the terms of the agreement allow you to repay the loan without any problems.
Video: How to Pay Off a Mortgage Quickly
HOW TO PAY OFF A HOME FAST! (I eliminate over k in mortgage interest costs in 30 months)
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