Here are some tried and true tips for paying down your mortgage faster.
Rent out your basement – Can’t move? Don’t want to move? Renovate your basement space into a functional apartment and use the income to help pay down debt.
Add an extra sum each month to your payment – Even if it’s $20 or $30 dollars, it will add up over time.
Bonus? Raise? Side job? – If you are already budgeting your money – you won’t notice or be affected by throwing your extra cash towards your mortgage. The extra cash will go far in reducing your principal mortgage debt.
Do you get an income tax refund? Use that refund towards your mortgage payment! Again – its that extra money that you don’t normally have and you won’t miss it monthly. Remember though, every lender and mortgage have their own prepayment rules and contracts. Discuss this with your lender.
Accelerated bi-weekly payments are a good choice – Instead of paying your mortgage monthly only 12 times per year, make your mortgage payment every two weeks for a total of 26 payments each year.
Consider rounding up your mortgage payments – if your payment is $563 – why not round that amount up to $570. Seemingly small amounts all add up in the end and save you from paying more interest over the years.
So those are some options and ideas to think about! Have more questions? Give one of our team members a call to discuss what will best suit your needs for paying down your mortgage quicker on Your Niagara Home!