Investing a fortune in a brand new property puts homeowners in a tight spot, in terms of finances. The mortgage and the debts are too much to square off in a short tenure.
Cutting the corners and scaling down your expenses is not enough to pull you out of the debt. Wrapping up a big purchase also tags you with the longest payment plans.
Wondering if there’s a way to shorten the tenure? Keeping the EMI’s on a roll for a good 30 years is no easy thing. Debts like mortgages can be overly burdening.
The question still stands – is it possible to clear off a big mortgage in just 5 years? The answer is yes!
How to pay off a debt on your property in the shortest tenure?
Save big and shell out a one-time payment
Mortgages are swanky. The interests are pretty steep too. If you have been putting extra money into funds or lucrative investments, clearing off the principal amount is easier done than thought. Read the terms of your mortgage before you settle the dues. A lump-sum one-time payment could attract richly charges too.
Rethink the amortization period
Have you clinched a contract that agrees to square off the mortgage in 25 years? Did you know that changing the amortization period is a piece of pie? Why be sparing with the mortgage dues when you have the means to clear the debt as early as possible? Of course, this might not sound like an economically favorable decision but freedom from mortgage and debt counts big. You can shorten the amortization tenure and proceed with the payments accordingly.
Frequent bi-weekly payment can clear your dues at the earliest
Have your earnings surged up well and square? Do you have the flexibility to square off expensive mortgage debts twice every week? If yes, the frequent big payments add up and pay off your dues sooner than expected.
Double up your debt repayments
If paying up the mortgage hardly stretches your finances, settle the dues using match-a-payment. Proposing to double the payment on your mortgage clears the debt in a spry. Wondering if it hikes up the interest rate too? No! Match-a-payment undeniably speeds up the process of paying off a mortgage quickly.
Freedom from the burdening mortgage is a top priority
Going debt-free is on the wish list of all and sundry. A mortgage is a pricey debt. If the dues are not paid off on time, your credit score hits the bottom, the cash reserves are exhausted, and the worst part, your property is at stake.
Do not stick with the initial amortization tenure agreed upon. Paying out the big fat check every month for 30 long years is a hard nut to crack. When your means amplify and your finances are in the best shape, alter the tenure and payout lump-sum amounts to square off the dues before time. It is critical to think and plan ways to kiss goodbye to the pricey debts and mortgage.
Are you geared to liquidate your mortgage in 5 years? Pitching in your money at the earliest is a good idea.