So you want to pay your mortgage off early, but you are confused about how to do so. The first thing you need to decide is how much extra cash you have available to put towards your current mortgage. Is it $50, $500 or somewhere in between? Second, do you have a specific time frame that you want to have your loan paid off in?
If you want to make larger payments when you have extra money, it is simple to do. All you have to do is make your regular payment and let the lender know, if you are making your payments online or via the mail, that the extra will be going to principal. By doing this on a regular basis, you can easily knock years off your mortgage.
Or, if you have a set time frame that you want to pay your loan off in, you can utilize a program available online, or even on your smart phone, called “Karl’s mortgage calculator.” This program will calculate how the payment that you need to make to pay off your loan in the desired time frame. It asks a few simple questions and tells you exactly what you want to know. It’s a fun little tool and you can change the numbers anytime you need to readjust your goals.
Keep in mind that you can also refinance to a lower rate and continue making the larger payment, as discussed last week. Then, you can payoff your loan even faster by constantly making higher principal payments.
If you have any questions about your mortgage needs, please contact Creekside Mortgage, Inc. at 360.571.LOAN (5626).