• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

National Debt Relief

National Debt Relief - A+ BBB Accredited Business - Get Relief From Credit Card Debt, Medical Bills And Unsecured Loans

Talk to a debt counselor toll free:

800-300-9550

Get Relief From Credit Card Debt

Medical Bills and Unsecured Loans

  • Apply Now
    • Qualifications
    • Is This Right For Me?
  • Proven Results
    • Debt Relief Benefits
    • Credit Card Debt Relief
  • Debt Relief
  • Credit Card Debt Relief
  • Debt Consolidation
  • Login
HomeBlog LoansTips To Pay Off Your Home Loan Earlier Than Expected
Video Transcript

Free Debt Consolidation Quote

By clicking "Get Free Quote", you agree that the phone number you are providing may be used to contact you by National Debt Relief (including autodialed and prerecorded calls, as well as text/SMS messages). Msg. and data rates apply, and your consent to such contact is not required for purchase.
  • National Debt Relief, LLC BBB Business Review
  • McAfee SECURE sites help keep you safe from identity theft, credit card fraud, spyware, spam, viruses and online scams

Tips To Pay Off Your Home Loan Earlier Than Expected

March 13, 2019 by Tom Harkins

learn how to pay off your home loan
figuring out how to pay off your home loan

Americans currently hold over $10 trillion in mortgage debt. If you’re one of them, chances are strong that monthly mortgage payment is one of your biggest bills. While a home may be one of the most significant investments you ever make, that monthly mortgage payment is often a major financial burden. It can limit your ability to take advantage of other financial opportunities, and, along with your credit card and other debts, can make it difficult to save or even have disposable income to enjoy each month. However, it doesn’t have to be that way. You can take several steps to address your mortgage debt faster than the terms of your current loan. Here are three great tips you can consider to pay off your home loan earlier than expected.

Get a Shorter Loan

One of the most straightforward ways to pay off your loan earlier than expected is to get a shorter loan. If you have a newer 30-year home loan, refinancing to a 15-year mortgage will cut your repayment period nearly in half. The shortened payment period means you’ll own your house in full much sooner than when you took out your original loan. In most cases, it’s easy to refinance a home; you may even be able to refinance with the lender that provided your original loan.

However, there are frequently fees and expenses associated with loan refinancing, so you should be prepared for that. Additionally, your monthly payments on the new loan will be considerably higher. Finally, if your credit rating has declined considerably since you obtained your original loan, you may not be eligible to refinance your current home loan. If any of these circumstances apply, then you may have to consider alternative methods to pay off your mortgage faster.

Pay More

Another great way to pay off your mortgage faster is to pay more than the minimum mortgage payments. Every dollar you commit toward your home loan’s principal will help you pay off the loan faster than the mortgage period. Paying your home loan off faster will also save you a considerable amount of money you’d otherwise owe as interest expenses. A good goal to set when paying down a home loan’s principal is to apply the equivalent of one extra loan payment each year; if you divide this number by 12 and then commit that extra on a monthly basis, it’s usually a manageable expense. Additionally, committing any unexpected financial windfalls toward your mortgage principal, such as an inheritance or bonus, is another great way to put that money to use paying down debt.

Additional payments towards your home loan principal may not be the best choice for everyone, however. If you have large credit card balances or other high-interest debt, it may make more sense to deal with those debts first. Additionally, if your current budget doesn’t allow for significant funds for extra payments, paying extra on your mortgage may not even be possible. Finally, stipulations on some home loans don’t allow early repayment, or otherwise charge penalty fees, so make sure you understand the terms of your loan if you decide to pay extra each month.

Make Bi-weekly Payments

Another great strategy to pay off your home loan sooner than expected is to make bi-weekly payments. Paying half of your mortgage payment every two weeks allows you to pay more money toward your principal each year with minimal stress or impact on your overall finances. This simple process is extremely effective. For example, let’s assume that your overall mortgage payment is $1,500 each month. If you stick to your monthly payment, you’ll make $18,000 in payments each year. However, if you pay your mortgage every two weeks, your annual payment will be bigger. If you pay a half month’s equivalent of $750 every two weeks, you’ll end up making 26 payments, for a total of $19,500. The bi-weekly payment strategy will equate to an extra mortgage payment each year.

While the bi-weekly payment strategy spreads the loan repayment burden across an entire month, it still does require you to pay more toward your mortgage each year. If you have other debts, or you have a tight budget, this may not be the best loan repayment option to consider. It will also increase the total number of financial transactions you have each month as well; if you don’t have a great deal of time to pay bills or focus on your finances, this plan may not appeal to you.

Get on Track to Becoming Mortgage-Free

Paying off your mortgage sooner than expected can ease your financial burden and give you the flexibility to pursue other financial opportunities. These three tips can all help you pay off your mortgage faster than the terms of your original home loan. So, find the option that works best for you and get on track to becoming mortgage-free today.

Do you qualify for debt consolidation?

Primary Sidebar

Consolidate Your Debt!
Find out how NDR could help.
  • Get one low monthly payment
  • Avoid bankruptcy
  • Get out of debt in 24-48 months
Get Your Free evaluation
Free Debt Consolidation Quote
By clicking "Get Free Quote", you agree that the phone number you are providing may be used to contact you by National Debt Relief (including autodialed and prerecorded calls, as well as text/SMS messages). Msg. and data rates apply, and your consent to such contact is not required for purchase.
 Trusted By Our Clients

"..."

Easy National Debt Relief Caller: Lauren B Transcribed WE 3/28/2021 Lauren B: The call may be recorded. What concerns led you to seek out National Debt Relief services? AARON: Basically, we were over our heads on the credit card debt. Lauren B: What was it that made you choose National Debt Relief over the other companies? AARON: It's just not a hard sell. They're pretty straightforward and not a lot of hoopla trying to get us to go onboard. Lauren B: How was your interaction with the negotiator you had worked with? AARON: It was fine, more than fine. Lauren B: Were you pretty comfortable with them or was there anything you thought could have been improved? AARON: No. I was very comfortable. Actually, my wife went and did it too. Lauren B: How'd they work with you on the payment plan? AARON: It's basically set in stone. We've been on for over a year, so it's all good. Lauren B: Are you completely done paying or are you still making a payment? AARON: I'm about in the middle of it right now. Lauren B: How has working with National Debt Relief impacted your life in any way? AARON: It makes it a little stressful at times with the payment plans, but at the same time, it's actually made it less stressful because we've learned to work in different ways with cash, stuff like that. It's fine. Lauren B: Overall, what would you rate your experience on a scale of one to five stars, five means you'd recommend to a friend and one means you're very dissatisfied? AARON: I would say 5. Lauren B: Would it be okay to post your comments as a review on our public website for National Debt Relief and to help other consumers make good choices? AARON: Sure. That's fine. Lauren B: I do have your email here as aaronlesser36@gmail.com. Is that right? AARON: Yup.

Trustpilot star rating Trustpilot star rating Trustpilot star rating Trustpilot star rating Trustpilot star rating

Aaron Lesser
ConsumerAffairs Reviews

Latest Loans Posts

  • 10 Terms to Know When You’re Confused About Personal Loans
  • 4 Business Loan Options for When You Have Bad Credit
  • Tips To Pay Off Your Home Loan Earlier Than Expected
  • How Do Taxes Work With Money Borrowed From My 401(k)?
  • What Trump’s New Policies Mean For Payday Loans
National Debt Relief, LLC BBB Business Review AFCC Top Ten Reviews Gold Top Consumer Reviews Consumers Advocate Trust Pilot
Company
  • About Us
  • Contact Us
  • Blog
  • Careers
  • Corporate
  • Privacy Policies
  • Terms Of Site
  • Disclaimer
  • Sitemap
Products
  • Debt Relief
  • Credit Card Debt Relief
  • Debt Consolidation
  • Debt Settlement
  • Calculators
  • FAQs
Debt Resources
  • Credit Card Debt
  • Bad Credit
  • Medical Debt
  • Personal Loan Debt
  • Unemployment
  • Divorce Debt
  • Retiree Debt
  • Veteran Debt
  • Business Debt
  • Personal Finance
Follow Us
  • Facebook
  • Twitter
  • Linkedin
  • Instagram
  • Pinterest

© 2021, National Debt Relief, All Rights Reserved.

Disclaimer
Disclaimer
Disclaimer