Home Loans and How to Pay Your Home Off in Half the Time

Having a home can be a huge leap toward financial independence and can be a huge statement towards your personal achievements. However, not everyone is capable of purchasing a home right off the bat and may need to rely on loans and payments.

One of the advantages of a home loan is having financial flexibility, including mortgage interest deduction in taxes and being able to set aside some money for emergencies. However, nowadays, more and more people want to own a home “free and clear.” The top reasons include wanting to be free of debt and having peace of mind.

Home Loans: Quick Tips for Paying in Half the Time
Home Loans: Quick Tips for Paying in Half the Time

Paying your home off in a short amount of time might seem impossible, but it actually is within the realm of possibility.


Home Loans: Quick Tips for Paying in Half the Time

Home Loans: Quick Tips for Paying in Half the Time
Home Loans: Quick Tips for Paying in Half the Time

Sometimes, you just need guides and sources from a website or even from a professional to give you advice on how to approach the subject of paying a home debt much more intelligently. This is exactly what we’re going to do, and here are some quick tips for home loans and how to pay your home off in half the time:


  • Understand and assess the loan properly and thoroughly: When you avail of a home loan or when you already have one, always make sure you keep your relevant documentation with you. Sources such as Empower FCU may remind you that you’re the one that knows your loan best, and as such, you should never lose important documentation on the matter. Take note of how often you have to pay your premium and how much interest is there, and compare it with how much you earn every month. Knowing these can be your best weapons against a hurtful home loan.
  • Ask if you can pay off your mortgage earlier: While it’s nice to think about paying off your mortgage early, check with the mortgage provider first if they allow this, as some companies only do at specific times or may even have penalties. Remember, when you pay extra, the extra should be deducted from your principal balance. Hence, clearly state that this payment should be applied on the principal, not on next month’s balance.
  • Check if it’s within your capacity to make an extra payment every quarter: Do some calculation to determine if it’s within your capacity to make an extra house payment every quarter. Finding ways to do so, more of which we’ll discuss below, can reduce your mortgage time. Doing this with a $220,000 mortgage to be paid in 30 years with a 4% interest rate may help you save as much as $65,000 in interest and allow you to complete your payments 11 years earlier.
  • Find better ways to save money by reducing expenses and finding alternatives: If you can reduce the budget of some of your expenses or find better and cheaper alternatives for them, then do so. Cultivate a lifestyle geared towards paying your mortgage sooner. Be mindful on where your money goes. Just having a strict lunch budget or even cutting expenses on unnecessary things can help you save money. A seemingly little expense, such as a $3 coffee every day or $90 a year, can add up along with your other “negligible” expenses. You can use this money to pay off your home earlier and free yourself from debt.
  • Refinance your loan if it’s becoming too intense to handle: If you really think your mortgage might be a little too much to handle, talk to your mortgage provider about it. They may have options to allow you to refinance longer-term mortgages into more bearable terms with alternating interest rates or alternating periods. This is much better than your mortgage company getting you into a situation where you can’t pay for the mortgage at all.
  • Consider downsizing your home for a smaller one: This might be a drastic measure, but if you really want to get rid of your mortgage, you can also sell your larger home and opt for a less expensive home, even if it’s smaller. With extra profits from your bigger house, you may even be able to pay for your new home completely in cash and/or pay for your other debts.
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The Bottom Line


With the above taken into consideration, it’s important to remember that clearing your home loans is possible with the right kind of planning and perspective. Always approach the matter from the perspective of your long-term financial goals, so you’re aware that the moves you’ll take will always be geared towards achieving a bright and stable financial future for you and your family.


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