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How to revel before 2042

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If you buy a house this year and have a 30-year mortgage, your last installment will be paid off in 2042. If you want to pay off the loan within 30 years and celebrate the complete ownership of your own house, the following suggestions can help you:

  • 1. According to your loan interest rate, you will shorten the loan term for five years if you pay 10% more for each month’s mortgage installment; Paying 20% more per month will shorten nine years! Even if you pay 5% more, the monthly mortgage installment of $1000 is $50 more, which will shorten the three-year loan term (the higher the repayment rate, the greater the impact).
  • 2. Remember that mortgage payments have the same effect as saving money in the bank, unless you can get a higher interest rate. Of course, the net assets accumulated by your house are hard to spend, which is a good thing!
  • 3. If you repay every two weeks, you will have 26 payments and 12 designated mortgage installments. If you pay an additional mortgage installment every year, the effect is the same as 1 above. You can shorten the ten-year mortgage term.
  • 4. If your down payment is less than 20%, you may need to pay for so-called mortgage insurance. Two years later, if your home’s net worth rises by 20%, you can refinance your mortgage and eliminate mortgage insurance. Of course, if the interest rate is too high, there is no advantage. But if the interest rate is too low, you can create more cash flow and accumulate it into the principal every month.
  • 5. If your mortgage is more than two years old, look into refinancing today. The interest rate was lower in the autumn of 2012, and you can now take on 15 or 20 years of mortgage loans without having to pay more each month. Don’t fall into the temptation to restart a 30-year mortgage without paying back more money to shorten the existing loan term.
  • 6. If you get a bonus or inheritance, even if it’s not enough to pay off the mortgage, you have to pay extra. You should remind the mortgage manager to use the repayment to repay the loan principal, not the future installment. Pay off a large amount of loan today, and more installments will become the principal of monthly repayment thereafter, and your mortgage will be paid off as soon as possible.

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Paying off the loan is quite a celebration. About 30 years ago, it was not uncommon for a family to burn mortgage documents to celebrate once they paid off their loans. Today, many families do not pay off their mortgages until they retire, finding themselves enslaved for life. When you fully own a house, you will have your own life – not let the house own you.