Money Talks News: Pay off your mortgage faster - Toledo News Now, News, Weather, Sports, Toledo, OH

Money Talks News: Pay off your mortgage faster

(Source: WTOL) (Source: WTOL)
Money Talks News -

The key to financial freedom is to be debt free, and the biggest debt for most people is their mortgage.

Money expert Stacy Johnson offers some tips on how to get out from under your mortgage as soon as possible.

Refinancing your mortgage is the first option.

“15 year mortgages will not only destroy that debt faster, they also have lower rates,” Johnson said.

However, refinancing can be expensive, and the payments are higher on a 15 year loan.

So, the next option is making an extra mortgage payment every year.

With bi-weekly payments, you pay half your regular payment every 2 weeks.

This leaves you making one extra payment annually and saving tens of thousands of dollars in interest.

“Just that one tactic can pay a 30 year mortgages in 22 years,” said Johnson. “Mortgage companies often try to sell you on these programs for a fee. Just say no. You can do the same thing yourself by simply adding an extra 1/12 of a payment monthly.”

If neither of these options work for you financially, Johnson says you can always just round up your existing mortgage payment.

“Your mortgage is your biggest debt, and you’re going to feel a lot more financially free when that debt is dust. The way you do it is to pay as much as you possibly can, every month,” Johnson said.

For more tips and tricks, visit MoneyTalksNews.com and search for “Mortgage”.
 

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