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How Do You Pay Your Tennessee Mortgage Faster?
Finishing off your mortgage can be one less worry off your back. But with all the expenses that you have, how do you just pay your mortgage much earlier than your mortgage length? You may sign up for an accelerated payment plan for your mortgage servicing company. But it will cost you hundreds of dollars just to do that. There are other ways to cut down your existing home loan down to size.
Pay a little extra on principal. Increase your monthly payment by at least 10%. Any additional money that you’re paying gets deducted from your principal balance which is the amount that you owe on the house without the interest. Since a huge portion of your early monthly payments goes to the interest, adding at least a 10% can make a difference in finishing your mortgage.
Make at least 1 extra payment each year. Try to budget your money and come up with a 1 regular car payment every year until the end of your contract. This can be done when you get your annual bonus or even your income tax return. It may only be just an extra payment, but doing so chop off a few months or even a year on your car loan. If you’re on a 30- Year mortgage plan, making an extra payment every year can take off more 30 months or more than 2 years from your loan.
Split your monthly payment in half and make a payment every 2 weeks. It may be difficult at first, but paying half of your regular monthly payment every two weeks can help you manage your mortgage every month. You can ask your bank if they can automatically transfer funds from your checking account to a savings account every two weeks, then be transferred to the lender by the end of the month. You can either request for it by calling the lender in states like Tennessee or ask if you can set up online transactions if possible.
If you’re going to follow each step, you’ll end up saving a whole lot more and possible pay off your loan earlier than expected. The only challenge is committing to these steps. Self- discipline is important to help you pay off your loan. Making sure that you pay your plan one month earlier can ensure that you won’t be charged for any penalties for getting behind. The late charges or penalties may be small at first, but doing it consecutively is like adding an additional month on your loan which will make it even harder for you to pay it off. If you discipline yourself much sooner, these steps can potentially save the most money.