4 Tips to Pay Your Mortgage Early

Single family house on pile of moneyFor most people, their home mortgage is the single most expensive loan they get their entire lives. This is why it makes sense to plan accordingly to pay it off sooner and here are some tips on how to make this happen:

Be Choosy with Your Mortgage Company

Paying off your mortgage early starts with finding a mortgage company in St. George with reasonable rates. Use all the tools you have to keep those rates down by making sure your credit score is more than impressive, thereby easily coaxing your lender to give you lower rates. It also helps to apply for a mortgage in a company where you have existing loans, so you’ll have a “loyalty” discount. Remember that you can’t benefit from a perk unless you ask for it, so go ask questions.

Pay More than the Minimum

Pay more than the minimum each month if you can afford it. Even a few dollars over the minimum will go a long way slashing off the overall amount. Ideally, you should go for an “automated” payment system, so that the amount is instantly removed from your bank. This way, you don’t have to worry about late fees.

Apply it to the Capital

See if there’s a way your extra payments can be applied to the capital rather than be considered as an advance to your next month’s payment. By applying it to the capital, you’ll be able to reduce the amount of which the interest is based.

Check Your Contract

Make sure to check your contract to see if there are any “early bird” penalties. As weird as it may sound, some companies don’t like it when you pay too early and will accord certain penalties. Ideally, this should be stricken out of the contract.

Of course, those are just some tips to keep in mind when paying off your mortgage. With the right mindset, you should be able to pay it all off in 10 years or fewer.