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According to a recent report of Leaks , 94% of the Americans interviewed say that possession of a house is part of the American dream. Eighty-four percent say that it is on their own personal list of objectives for the future. However, unless you have the money to buy a property and who does it? - To buy a house does not necessarily equivalent to financial freedom. With each monthly payment, you get closer to real American Dream: Having your own house without all the tied strings. If you get away from monthly payments, you may be wondering how to reimburse your mortgage faster.

The good news is that financial experts say it is possible - and is worth it. Indeed, if you can reimburse your mortgage earlier than late, you can considerably reduce not only the principal but also on interest payments. This can be particularly beneficial if interest rates were high at the time of purchase.

However, it should be noted that it is not always Better to repay your mortgage early. If you have other important debts with even higher interest rates - for example, student loans or personal loans - you should pay them first while following your regular mortgage payments.

Once done, you are free and clear to make major progress on your mortgage. "If you are in a favorable financial situation and you comfortably respect your monthly mortgage payments, the prospect of a reimbursement of early mortgages could become a realistic objective," explains Pete Mugleston , a mortgage expert Online mortgage advisor . "There are several strategic avenues that owners can explore to work to repay their mortgage early."

Ready for your new payment plan, approved by mortgage and finance experts? These are their best advice to repay your mortgage faster.

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12 ways to repay your mortgage faster

If you are ready to make a change but I do not know where to start, you may be wondering now: how can I reimburse my mortgage faster? It is, of course, easier to say than to do. Fortunately, the experts say that by knowing the available options, you can start reimbursement of your debts.

1. Engage yourself to pay too much.

One of the easiest ways to repay your mortgage faster is to increase your monthly payments, which are often called too much-paled.

"Additional debit on your mortgage reduces not only the amount of interest you pay on your debt, but also accelerates the decrease in your loan / value ratio," explains Mugleston.

"This could lead to more affordable tutoring options than if you had not paid too much," he adds, noting that people who were paid too much on their mortgage, even by a few hundred dollars a month, can shave The years of their mortgage and save thousands of interest.

Even if you don't have much additional money, you can do so by bringing together your mortgage reimbursements to the nearest hundred, causing constantly higher payments.

"Even a small increase in each payment can make a significant difference over time," explains Mugleston. "By systematically paying more than the amount required, you reduce the main balance faster, which in turn reduces the amount of interest you need. This approach accelerates the reimbursement process and can help you reimburse your mortgage before the date planned. "

2. Use the execlares wisely.

Then Mugleston recommends placing the financial manifies that you may receive for additional mortgage payment. When you do, make sure to specify that you want to use the money to reimburse the main loan.

"EXIERRES, such as premiums, tax reimbursements or inheritances, can accelerate your mortgage reimbursement by providing a lump sum of funds which can be allocated to the reimbursement of part of your mortgage director," said the mortgage expert.

"By applying a windfall directly to your mortgage balance, you automatically reduce the debt in progress, thus reducing the amount of interest accumulated over the duration of the remaining loan," he explains. "This approach accelerates your mortgage reimbursement and can considerably shorten the time required to reimburse the loan in full."

3. Make bihebdomedary payments.

Another way to accelerate your payment schedule is to divide your monthly payments into bihebdomedary payments without modifying the total amount you contribute each month.

"By passing from payments of monthly to two weeks, you make 26 half-payments per year, totaling 13 complete payments each year. This strategic approach is used to gradually reduce interest obligations on mortgage duration," said Mugleston.

Erika Kullberg , an expert in personal finance, lawyer and founder of Erika.com , should make additional mortgage payments on a bihebdomedary basis is a solid strategy. "Do this, and your mortgage could be reduced up to five years, while your payments of interest would produce a huge economy," she said Better life.

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4. Save for additional payment per year.

Even if you do not divide your payments into bihebdomedar payments, you can reimburse your mortgage more quickly by making additional mortgage at a time that suits you best.

"Make an additional month of payment once a year, using a tax refund, a bonus or saving a little each month. This is similar to bihebdomedary payments and can reduce your mortgage by several years," explains Kullberg.

Felton Ellington , director of loans at Home Chaser Lending , says that before making additional payments, you should be sure to check with your lender to find out more about the options or offers that may be available for you.

"For example, an excess could be automatically applied to your next payment, which would reduce the amount due this month, but would not significantly affect your director," he said Better life. "" In other cases, your lender may offer the possibility of allocating an additional amount or even setting up a recurring payment plan which applies additional payment to the main balance.

"If you plan to stay in your home, want to build equity, reimburse your mortgage more quickly or want to save on interest, make additional payments on your mortgage could be worth it," adds Ellington.

5. Dedicate the increases in your mortgage.

If you comfortably reimburse your mortgage using your current salary, devoting any future increase to payment can help you get the most out of your monthly mortgage payment.

"Take any increase in your annual income and apply it to pay your mortgage," advises Kullberg.

This can also give you the boost you need to negotiate increases on a fixed schedule. Most experts agree that you should ask for an increase of every two years, depending on your area.

6. Add a dollar - or 10 - each month.

Scott Lieberman , founder of Touched money , Says that another way of accelerating your mortgage payments is to add a dollar each month.

"A dollar seems small, but it can make snowball. If your income increases, you can make your payments increase with them. In 10th year, you pay an additional $ 120 per month. By year 20 years, c ' is up to an additional $ 240, and you'll have finished soon, "he said. To further accelerate the process, add $ 10 each month as long as you can maintain the increase.

You don't know where you will find the money? Kullberg recommends cancel or postpone non -essential expenses and channel this money in your mortgage. "Reduce your discretionary expenses by lowering your outings or subscriptions or reducing luxury items," she suggests.

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7. Avoid private mortgage insurance (PMI).

Mugleston says that another way to repay your mortgage more quickly is to avoid private mortgage insurance (PMI).

"PMI is an additional cost that adds to your monthly mortgage payment," he explains. "By avoiding PMI, you can reduce your monthly expenses and allocate more funds to your mortgage director, speed up the reimbursement process."

"PMI is generally required for borrowers who deposit less than 20% of the home purchase price. By making a larger deposit or while waiting for you to have enough funds and shorten the time required to reimburse your mortgage He says.

8. Invest the money you save on your deduction of tax on mortgage interests.

Having a house comes with certain advantages when the tax time takes place. In particular, you should receive a deduction of tax on mortgage interests for up to $ 750,000 from your mortgage debt on your main residence.

A simple way to use that has saved money to your advantage is to reinvest it in an overpayer on your next monthly mortgage payment. You will not miss the money and you will put it wisely.

9. Get a side jostling to increase your mortgage payments.

Budgeting expert Andrea Woroch Said that even if you want to reimburse your mortgage early, it is important that you do not compromise the rest of your budget. "This could leave you too often on your high interest credit card," she said Better life. AE0FCC31AE342FD3A1346EBB1F342FCB

World adds that an excellent way to make greater mortgage payments without exhausting your bank account is to start a rush And put these additional funds to your loan. You don't know where to start? She recommends a virtual tutoring, a pet session or the rental of a spare room in your home via Airbnb.

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10. Monitor your progress.

Mugleston says that it is a good idea to be aware of your global progress in the reimbursement of your mortgage, which can help you keep in mind your big image goals.

"The regular revision of your mortgage balance facilitates a faster reimbursement by providing a clear understanding of your progress towards the elimination of debt," he said. "By remaining informed of the remaining main balance, of all changing interest rates, etc., you can develop strategies and adjust reimbursement efforts accordingly. Stay vigilant with regular examinations pushes you to make informed financial decisions and To accelerate the reimbursement process of your mortgage. "

11. Create a budget for your other expenses.

You cannot reimburse your mortgage faster if other expenses continue to crawl and exhaust your available funds. Mugleston recommends making a clear budget reflecting all your financial commitments so that you have less unexpected payments to make.

"Budgeting plays a crucial role in accelerating mortgage reimbursements," he urges. "Effective budgeting allows you to identify and eliminate unnecessary expenses, allowing you to allocate a higher part of your income to mortgage payments, by reducing the main amount due."

12. Refinance your mortgage to a shorter duration.

Finally, if you are fully determined to repay your mortgage early, you can still refinance with your lender.

"Refinancing to a shorter duration can reduce your overall mortgage duration because it generally involves guaranteeing a loan with a shorter reimbursement period. This means that you make higher monthly payments compared to longer loan conditions", explains Mugleston. "The shorter loan conditions are often delivered with lower interest rates, which means that less money is paid for interest on mortgage lifespan. Consequently, you can save on the costs of Interest and reimburse your mortgage faster compared to a longer loan period. "

Kullberg should be a very effective strategy if you can afford it. "In addition to reducing your interest rate, the refinancing of a shorter mortgage duration - let's say, from 30 to 15 years - can reduce the years of your loan term", which has led to financial freedom more Early, she said.

Best Life offers the most recent financial information of the best experts and the latest news and research, but our content is not supposed to replace professional advice. Regarding the money you spend, save or invest, always consult your financial advisor directly.