How To Pay Off A Mortgage Early

"Pay off a mortgage early!" is one of the best investment strategies many financial planners will tell you to adopt...and pay off a mortgage in the shortest time frame possible.

There are many tips to putting your mortgage repayment schedule on the fast track, and most of them can be done with a minimum of hassle and stress.

Select the most frequent payment option available.

By choosing to make bi weekly payments on your mortgage, or even a weekly versus monthly payments, your result is making extra payments every year. Over the life of your mortgage loan, this approach can save you thousands of dollars in interest, and pay off a mortgage early... by years. Best of all, you'll hardly notice the difference, since you'll simply be making regular payments.

Consider a closed mortgage.

Getting the lowest rate mortgage available just seems like common sense, yet a great many homeowners choose open mortgages versus the lower rate closed versions.

Unless you're expecting a windfall and are planning to pay off a mortgage before the end of it's term, closed mortgages may be your best choice.
Although you can't add extra money whenever you wish, most closed mortgages allow for an annual lump sum payment, often ten or fifteen percent of the loan.

Also, you can top it up to any amount at the end of the term.
Talk to your mortgage lender to find out what provisions their closed mortgages offer for repayment.
In most cases, you'll find that the lower rate closed mortgage offers you the best alternative.

Investigate mortgage refinancing.

If your current mortgage loan is charging a higher rate than the current very affordable interest rates now available, then you should investigate refinancing your mortgage.

Even if your mortgage hasn't completed its term, you may find that your current lender will still let you renegotiate a new mortgage now, particularly if the term is a long one.

Shop around for mortgages and renewals.

Gone are the days of "one-stop financial shopping" when people routinely arranged for mortgages where they did their banking.
There are many more mortgage refinancing options available to you. Ask a mortgage broker or a real estate professional to tell you more.

Don't let a mortgage prepayment penalty discourage you.

Even if your current lender won't let you out of your current loan arrangement without paying a penalty, do the math!

You may find out that it's still financially advantageous to pay the mortgage penalty to gain a far more attractive interest rate, and lock it in now.

Act while home mortgage rates are at their most favorable.

Remember, we've seen interest and mortgage rates starting to rise recently.
If you decide to wait until the term of your current mortgage loan expires before renegotiating, you risk paying a higher interest rate for many more years to come.

So,...back to the Financial Planners' Strategy: Pay off a mortgage early!

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