One of the best feelings in the world is knowing that your mortgage has already been paid in full. So why not redeem your mortgage early on?
A redeemed mortgage is a mortgage that has been fully paid by the borrower. This means the end of monthly payments and the start of full control over your property. And yes, there are ways to do this without waiting for 25 years or so.
Ways to redeem your mortgage
- Pay more
Had your bonus for the month? Use it to pay your mortgage. Paying more than the usual is one of the most effective means to redeem your mortgage early on. Easier said than done as you need to manage your monthly expenses, but it is definitely doable.
- Pay more often
Instead of paying once a month, paying it bi-monthly would make you finish paying your mortgage at a shorter amount of time. This also means lesser interest rates. Discuss with a Salt Lake City mortgage company on how you would be able to avail this option.
- Refinance to lower interest mortgage
Technically, shifting to a lower interest rate would mean paying less for a longer amount of time. Do refinance to a lower interest rate mortgage but keep your payments the same. If the minimum is $700/month in your previous mortgage and the minimum is $500/month when you refinance, still stick with your $700/month payment.
- Refinance to a shorter period mortgage
Refinancing to a shorter period would mean lower interest rates and shorter payment period but higher monthly payments. If your monthly expenses allow you to pay more than the usual, then you may opt to choose this method.
Overall, discipline is the key to redeeming your mortgage earlier. Tightening your financial belts for a few months is definitely worth it, if it means being debt free earlier.