Morgatge Free Faster!

 

Your financial responsibilities of homeownership will begin with taking possession of your home. There are number of strategies, which you can employ to become mortgage free faster.

 

Strategy #1: Increase the frequency of your mortgage payment Switch your mortgage payment from monthly to weekly or bi-weekly and round up the payment. This would reduce your amortization period.

 

Strategy #2: Increase your payment option By simply increasing your payment by 10%, if allowed by the lender, you can significantly reduce your overall interest cost and become mortgage free faster.

Strategy #3: Take advantage of pre-payment option Another way of becoming mortgage free faster is to make lump-sum payments toward your mortgage. Generally, depending on the lender, you can pay up to 15% of the original amount of mortgage each calendar year.

Strategy#4: Select a shorter amortization period Most mortgages are amortized over a 25-year period. However, you can choose an either a longer term up to 40 years or shorter term. When shorter amortization is chosen the amount of interest paid is dramatically reduced.