I’ll never forget the day that I signed my first home mortgage. I financed such a large amount of money that I couldn’t really comprehend the amount. That day I only knew two things: I wanted to purchase a house and the bank was willing to lend me the money. It wasn’t until after I made my first mortgage payment that I realized just how much this debt was going to cost me. As I begin to discover the enormity of this debt, I set out to find ways to eliminate my mortgage quickly so that more of my money would be applied to the principle balance instead of the interest.
It’s my hope that this series can help you eliminate what is usually the single largest expense in the household budget and free that money up to much greater things!
PART ONE – Lower The Interest Rate
One key way to quickly getting rid of the mortgage is to have an excellent mortgage interest rate. Current mortgage rates are still near an all time low. CNNMoney’s has an excellent online calculator that can be used to evaluate different refinancing alternatives to see which one is best for your situation. It can be obtained HERE.
Just lowering the interest rate by 1% on a $100,000 mortgage will save nearly $1,000/year! That, my friends, will spend just like money and I would much rather apply that money toward principal reduction or funding a dream than sending it as a gift to my mortgage lender!
Another great tool is the Early Pay-Off Calculator located on our website under the Tools tab. This tool will show you how much more quickly you can pay off your loan if you obtain a lower interest rate.
This can seem very basic, but it is easy to get caught up in the day-t0-day bustle of life and miss one of the key ways to eliminate the mortgage more swiftly!