There are certain financial and psychological benefits of repaying your mortgage loan early. If you are indeed interested to pay off your mortgage early, there are some smart and safe ways to do so. Here we briefly discuss some of them.
Pay more than the minimum
By using the mortgage calculator, you can get to know about the minimum amount that you will be required to pay each month so as to repay the mortgage loan. If you pay more than the minimum amount, you will be able to get rid of the loan obligations much early. However, you also need to ensure that the extra payments that you make each month do not put strain on your finances.
Refinance with a shorter-term mortgage
One good option to pay off your mortgage early is to refinance your mortgage with a shorter term mortgage loan. You can refinance a 30-year mortgage loan with a 15-year mortgage. The monthly mortgage payment on a 15-year mortgage loan is higher than that of a 30-year mortgage loan.
Consider switching to biweekly payments
In order to pay off your mortgage early, you can opt for biweekly mortgage payments, instead of monthly mortgage payments. The extra annual payment that you make by switching to biweekly payment mode actually helps you get rid of mortgage loan obligations much early.
By following one of the above mentioned methods or by following any combination of these methods, you can pay off your mortgages early.