How can one pay a mortgage faster? While paying a mortgage is not a likeable idea for anyone, decreasing your mortgage with advanced fees or approaching a great deal prove to make great convenience. Domain lists down four tips that can help mortgage payers lower their monthly fees and pay their mortgage at ease.
1. Make smaller payments, more often
One way to keep your mortgage fees smaller is by paying it little by little. Religiously paying your monthly mortgage due on time will even reduce the amount. But considering a different payment scheme in clearing your due may create a relative increase or decrease in your annual payment, review which scheme will be suitable for you and know which is option to pay off your mortgage.
"If you pay your mortgage monthly, consider changing to fortnightly repayments. For example, if your mortgage equates to $2400 a month, cut this in half and pay $1200 each fortnight," according to the outlet. "As well as having more manageable payments to make, by the end of the year you will have paid off $31,200 rather than $28,800."
2. Pay just a little bit extra
Adding a little extra amount on your monthly payment will have a considerable decrease on your mortgage due at the end. It doesn't need to be a big amount even adding a $100 or an additional $20 in your payments can lessen the burden afterwards.
"By rounding up to a full number or contributing an extra $100 or even $10, you'll significantly reduce your mortgage." as detailed in the article.
3. Don't decrease repayments when interest rates fall
Keeping a steady amount for your dues while the interest rates are declining will help you achieve a more lessened mortgage payment. Another great tip is to even beat out the amount that you are paying while the interest rates are down.
"By keeping your repayments at the same level when interest rates fall, you will pay down more of the principle with each payment and make speedy progress on your loan," explained Siobhan Hayden, Chief Executive of the Mortgage and Finance Association of Australia.