Carrying around the burden of a mortgage payment can create added stress in your life and at your job. Working hard every day just to stay on top of the present can put a damper on how you see your future. You might be wondering how to cut your mortgage in half so that you can start saving for retirement, creating a comfy savings cushion, or planning an ideal vacation guilt-free. Here are some tips for getting over the hurdle faster and cutting down the life of your mortgage.
How to Cut Your Mortgage in Half
Getting ahead of the terms of your mortgage loan can help create a more robust present and future for you and your family. Wondering how to cut your mortgage in half is the first step in a proactive approach to managing your finances. Most mortgages last 30 years, but cutting it down to 15 doesn’t have to be as daunting as it sounds. There are some tips and tricks for how you can make your payments have a bigger impact.
Refinance a Shorter Loan
You can opt to refinance your 30-year mortgage for a 10 or 15-year loan. Your monthly payment will be bigger each month, but the life of the loan will be cut into fractions. If you’re able to make some adjustments in other areas of your life to facilitate larger monthly payments, this can afford you future freedom and stretch for your dollar. Life coaching services can help you manage your money and your spending habits so that you can be more conservative with your unnecessary spending and see what you get out of the deal.
Increase Your Payments
You probably already know how to cut your mortgage in half, and it doesn’t always require re-financing. You can simply make extra payments each month, divided by principal and interest, so that you take a bigger chunk out of what you owe. But before you start making those extra or padded payments, check with your mortgage lender to make sure your extra payments will be dispersed onto the loan the way you hope. Just inform them you’re hoping to pay more and find out the best approach to making these mortgage cuts.
Make One Extra Payment
If wondering how to cut a 30-year mortgage in half seems overwhelming, and making larger payments each month isn’t in your budget, take chunks out where you can. Make one extra mortgage payment each year which can still add some extra benefit in the long run. YesGurus can connect you with a financial coach if you need some support and accountability with your budgeting. Coaching can help put your monthly and annual spending into perspective and identify steps that will lead to your long-term goals.
Add Little Bonuses
A great tip on how to cut your mortgage in half is to apply the extra bits of money you come into. Things like tax returns, inheritance, money from a raise or a bonus at work – these can all contribute to a nice lump sum being taken off from your overall amount due and lessen the life of your loan. It will likely make it difficult to predict your payoff date because it isn’t a regular or consistent payment, but it can help in the long run to make critical improvements to your overall spending abilities. Get some other ideas about how to execute this by browsing YesGurus’ library of self-help books, which includes some crash courses in financial planning.
If you’re ready to start working toward a more sustainable financial future, let YesGurus connect you with a coach today!
Author: Vanessa Rose
Vanessa is a psychotherapist and writer who enjoys wandering aimlessly around Los Angeles in her free time. With a background in business, she embraces how structure and goals can significantly support the journey into the wild west of psychological exploration. Always curious about self-improvement and emotional expansion, Vanessa also manages her own website which explores the unconscious motivations of eating disorders in women.