After years of saving up, you finally have your very own house! A sanctuary that you can paint in any color play music as loudly as you want and host endless parties and gatherings—all with no restrictions. Then reality sets in, and you realize that you’re now stuck with a mortgage for what sounds like the rest of your life. Although you love the freedom of having your own home, imagine how much less stressful life would be if you didn’t make a costly house payment each month?
A mortgage is a legal document that you sign when you buy or refinance a home that gives the lender the right to take the property if you fail to repay the loan. Mortgages are a huge commitment, and they legally cement your responsibility to repay your home loan. Talking about paying off your home is an intimidating topic, but don’t worry, there are ways to help you pay off your mortgage faster.
Bring Lunch to Work
Admit it. You’re guilty of splurging on fast food during your lunch break. You tell yourself it’s just a treat for Mondays, but soon eating out becomes a Tuesday ritual, and the Tuesday ritual becomes a Wednesday routine. Pretty soon, you’re eating out every day at work as well as on the weekends! Stop feeling ashamed of lugging a brown bag of your homemade meals to work. Say you’ve budgeted at least $100 a month on lunch money alone. Those monthly $100 that you spend in just lunch food alone could be applied to your mortgage; this would save you more than $28,000 in interest.
Even if it means waking up earlier, packing your lunch is healthy for your wellbeing, wallet, and mortgage. Prioritizing has never been easier.
Biweekly Mortgage Payments
Are you currently making monthly mortgage payments? Consider switching to a biweekly mortgage payment, which means that you’d make a half-sized payment every two weeks. If your typical mortgage payment is $1,000 a month, by converting to a biweekly payment, you’d be paying $500 every other week. But isn’t that the same as just paying the $1,000 once a month? Not quite.
Because there are 52 weeks in one year, a biweekly payment plan results in 13 full-sized payments a year instead of the 12 that you’re used to. You’ll be making a full extra payment each year. Now you’re probably asking yourself, “A full extra payment? Why would I want to do that?” Think about the long-run—if you have a 30-year $200,000 mortgage at a 5% interest rate, paying two times a month for your mortgage can easily save you $34,400 in interest. The numbers don’t lie.
Are you currently experiencing financial hardships because of your mortgage? By selling your home to a house buying company, you’ll receive a cash payment fast. If you live in Huntsville, Alabama, and are looking to sell your home, contact Local Home Buyers today.