How to Pay Off Your Mortgage Faster in 2017

2017-03-31 10:28:18

The primary goal for any homeowner is to pay off the mortgage as quickly as possible. When you own a property, it can be rather liberating to know that you are mortgage-free, especially after just 10 years removed from acquiring your four-bedroom home in the heart of Windsor.

Although housing prices are surging across the province of Ontario, it is still possible to pay off your mortgage before the 20-, 25- or 30-year amortization period has come to an end. With a little bit of determination, sacrifice and cut backs, you can make your friends and family members envious that you are mortgage-free.

Many may present the case that it doesn't make sense to aggressively pay off your mortgage in an economic environment of historically low interest rates. However, akin to any other form of debt, being mortgage-free allows you allocate those resources for other investment vehicles.

By the end of 2017, you may be ahead of schedule with your mortgage by paying off thousands of dollars. With this success, you will have soared to the utmost pecuniary heights.

Here are five ways to pay off your mortgage faster in 2017:

Embrace Bi-Weekly Payments

It is true that automatic monthly payments are far more convenient and definitely more affordable. However, you won't get anywhere if you're paying the exact same amount every month for the next two decades. It is important to change it up, even if it just for one year.

How can you adjust your payments? Go bi-weekly! Rather than making 12 payments a year, try your best to make 26 payments per year. You will save a lot of money on interest over time.

An Anniversary Lump Sum Gift

Your anniversary will be remembered as one of the most groundbreaking moments in your lifetime. It was a magical day, a time when you started a path towards something new with great memories to look forward to. By the way, we're not talking about wedding anniversaries. We're talking about the day you were accepted for a mortgage by the bank.

When your mortgage anniversary rolls around, slap down a lump sum payment. It doesn't matter if it is $100 or $1,000, any little bit counts and it will surely make a dent in your pile of debt.

Round up Your Mortgage Payments

The financial institution has calculated that your mortgage payment will be $1,093.23. Why not round it up to $1,100? You can sacrifice that Monday morning trip to Tim Hortons or Starbucks and put that $7 or so towards your mortgage payment. It may not seem like much, but similar to the anniversary lump sum gift, every little bit counts.

Stay Informed of the Mortgage Market

You have your mortgage approved, you're making your regular payments and you're simply concentrating on enjoying your home. That's all you need to worry about, correct? Nope.

Moving forward, it is best to refrain from burying your head in the sand pertaining to both the housing market and the mortgage industry. Instead, pay attention to the mortgage market and learn about interest rates, new government rules and updated mortgage options.

By doing this, you can come up with a plan to save you money and lower your costs when you refinance your mortgage.

Use Any Unexpected Funds to Pay the Mortgage

We all welcome unexpected funds to come to us. For many, it likely won't happen. For some, it will transpire more than one occasion. When you do get unexpected funds – a bonus at work, inheritance from a distant relative or a tax refund – transfer the money to your mortgage.

Final Thoughts

Mortgage debt is the biggest form of debt in Canada today. Across the country, housing values are surging, which is making it difficult for new homebuyers to enter the market. If you are fortunate enough to purchase a modest and affordable home then you have to do your best to pay off that mortgage as quickly as possible before interest rates begin to creep up.

Everything from making coffee at home to perhaps getting a part-time job, there are numerous ways to tackle that mortgage and wipe away any remaining funds one loonie at a time.