“So you want to payoff your mortgage faster?”
I wish I had read this before paying off my mortgage!
Some banks or other financial institutions offer a mortgage accelerator program. It’s usually some type of program that helps you payoff your mortgage faster. The deal is, they charge you for this. It could be anywhere from a few hundred bucks to several thousands dollars.
Do not use these programs. They are a total rip-off. You can use any of the methods below to payoff your mortgage faster without spending a penny.
Paying off your mortgage faster is something most homeowners consider at some point. There are practical and psychological reasons for doing so. We’ll hit the pros and cons after discussing the 5 top strategies to payoff your mortgage fast.
Make sure that your loan doesn’t have a prepayment penalty built in. They are uncommon, but out there. Be sure you understand how much it will cost and if it makes sense to pay this fee.
By the way, when you get a loan, make sure there isn’t a prepayment penalty!
In my case, I bought a townhouse in 2003 in Alexandria, Virginia for $280,000. I put 10% down, financed 10% of the loan at a 7% interest rate, and then rest was a mortgage at 5.5% on a 30-year fixed rate loan.
While reading Dave Ramsey’s Total Money Makeover book one day, I saw the section in there where he suggests paying off your mortgage after paying off debt and funding retirement accounts.
I thought, wow! That’s a crazy idea!
But the idea of paying if off intrigued me. I liked the idea of having no debt!
I threw everything I could at that loan over the next six years and paid it off.
And I LOVE the feeling of it being gone.