Are you looking for a way to pay off your home loan sooner? Your home is one of the biggest investments that you’ll ever make, which results in it also being the largest debt and monthly payment that you’ll more than likely have as well. By paying off your home loan sooner, the money that you normally spend on your mortgage payment every month can be used towards other financial goals, such as saving for retirement, paying for education, paying down your other debts, or even taking a trip that you’ve always wanted to take. At Vogue Financial Solutions, we can show you how to pay off your loan in ten years so that you have your financial freedom sooner, rather than later.
The most obvious way to pay off your home loan sooner is to make larger payments. But what if you don’t have the available funds to make larger payments on your mortgage every month? This is where Vogue Financial Solutions can assist you.
Pay Off Your Loan Early with the Help of a Budget
If you have the desire to pay off your home loan early, a budget is the best tool possible that will help you achieve your goal. Having a budget is essential to stay on track financially, but it’s even more important when you want or need to find extra money to pay down your mortgage quicker.
If you know what your debts and expenses are every month, there’s a good chance that you can find the extra money to pay off your mortgage sooner by making larger payments. Every day small purchases can add up quickly and your budget will help you determine where you can cut back. For example, if you’re spending a few dollars a day on coffee, you may not realize that by the end of the month, those few dollars have turned into a hundred dollars or more.
A budget that’s been properly set up can also help you see when all of your bills are due, which can assist you in making sure that they’re all paid on time. Late fees can also add up very quickly over time, possibly preventing you from being able to apply extra money to your mortgage. Plus, everyone ends up paying fees for something from time to time. If you notice that you’re paying fees for baking or other services, it will give you the opportunity to shop around for a better deal, which can save you additional money.
It’s common to hear people claim that they don’t have enough money to make extra payments on their mortgage, but once a budget is created, it’s immediately determined that there are plenty of ways for money to be saved and applied towards their home loan.
The Number One Benefit from Paying Off Your Mortgage Early
Why the rush? If you’re getting by just fine making your standard payments and you don’t plan on moving anytime soon, you may be wondering why it’s such a good idea to pay off your home loan early.
The amount of money that you can save by paying off your home loan early is astounding! Every payment that you make on your home loan is split between principal and interest. The longer that you pay on your mortgage, the more interest you’re going to end up paying over the life of the loan. Imagine the amount of money you would save if you paid off your home loan in 10 years rather than 25 years. That’s 15 years-worth of interest that would be staying in your pocket rather than being paid to the bank.
Coming Up with a Strategy to Pay Your Home Loan Off Early
There are several different strategies that you can use to pay off your home loan early. The first step is making your budget so that you can determine where you can pull the extra money from and how much you can realistically cut back. The goal is to find things that you can spend less on; not take away from paying on other obligations.
Every person’s financial situation is different and therefore, it may be possible to pay a lot more towards your home loan or it may only be possible to pay a little more. Your budget will help you make this determination, but once you have a clear financial picture, here are a few strategies to consider:
- Make a half of mortgage payment every fortnight. By the end of the year, it will result in an extra payment being made.
- Determine how much extra you can afford to pay every month and make a larger monthly payment.
- If you cannot apply extra money every month but you receive a lump sum of money, you can apply that amount to your loan to help reduce the total debt owed.
Another consideration is to take a look at the current interest rate you’re paying to see if acquiring a better rate would help you pay down your home loan quicker. If you have a fixed rate loan with a higher interest rate, refinancing into a lower interest rate loan may give you the opportunity to pay less interest over the term of the loan.
There are numerous strategies that can assist you with paying off your home loan early and we will help you find the one that will benefit your specific situation. Whether you’re simply interested in finding the extra funds that you need to pay more on your home loan or you’re interested in finding a different loan package that will help you accomplish your payment goals, Vogue Financial Solutions is here to assist you.
At Vogue Financial Solutions, we work with each customer to find the best solutions to help them meet their financial goals. If you’re interested in paying off your home loan in 10 years or even just a little early, our dedicated team of professionals can help you create a budget and come up with a payment strategy that makes sense for you and your financial situation.