Tips To Pay Off Your Mortgage In The Shortest Time

Debt is a burden that nobody wants. It keeps your hands tied and doesn’t allow you to experience the true taste of freedom until you pay off every single penny. During this time, setting a goal of paying your mortgage in the shortest time with the help of a finance broker in Sydney is the best way to break free from the burden so you can comfortably enjoy the peace of your home that belongs to you. 

Setting a goal to pay your mortgage is a courageous and smart step, but have you wondered how it will happen? Repaying home loans in Sydney takes well-planned strategies and efforts to implement them. Therefore, we have mentioned some tips that can help you get out of your debt in the most efficient way. 

Pay Off Your Mortgage Quickly

As you get your hands on the process of home loan approval, the mortgage begins to knock on your door. However, before you deal with your mortgage repayments, it is essential to pay attention to your other financial goals and prioritise them before you pay your mortgage. The other financial goals that you need to consider before setting up another primary goal may include:

• Pay off the consumer debt that you may have through your credit card, car notes or student loans.
• Start saving and form an emergency fund incorporating your expenses for about 3-6 months.
• Invest about 15% of your income for the retirement phase.
• Keep a different stash for your kid’s college and other requirements. 

Paying the mortgage in the shortest time is only possible when you have successfully 

fulfilled these priorities, as these factors can haunt you while you are paying off your mortgage. 

Now, let’s move on to the tips that can help you to pay off your mortgage in the shortest time. 

Make Extra Loan Payments

The more you pay, the more you save. As you make payments for your debt, you already know that the amount of interest you put in with every payment goes down. To make faster payments, you can make extra payments for the loan to decrease the due amount and the interest payments. 

Let’s say you are supposed to pay $240,000 for your home loans in Sydney with an interest rate of 7%, creating a monthly payment of $1,597 that will go on for thirty years. Now, if you begin to pay extra house payments twice or thrice in a year, you will be able to cut the time in half, which would be around 15 years, and enable you to save a big amount of $184,000 on your repayments. 

Make Room For Extra Cash In Budget

You might think paying extra house payments quarterly can be a great idea, but how will you get the extra money to make extra payments for home loans in Sydney? 

The way to make extra money is to make room in your budget by saving or cutting down on your expenses. If you are not the type who makes a budget for your home, then become one because making a budget and creating room for extra payments will help you in the long run. 

Here’s how you can try to cut down on your expenses:

• Limit your grocery budget.
• Control your hunger for eating outside.
• Do an insurance coverage check-up.
• Do a health check for home loans.
• Sacrifice on some subscriptions.
• Limit your online shopping.

Refinance

If you haven’t considered it already, it is time to give it a thought. Refinancing can be a great way to reduce the number of payments along with a low-interest rate. 

If you can find a new loan that offers an interest rate lower than your existing one and reduces the time of your payments to half, you can always shift to it with the help of a finance broker in Sydney. 

Even though your payment amounts will increase, you can prepare yourself with ways to manage your expenses. 

Downsize

It may sound off-key, but if you are eager to get the mortgage load off your back, you can always consider downsizing your house with the help of a finance broker in Sydney.

Downsizing refers to selling your large house with the profit you make and then purchasing a smaller, less expensive house. The profit may help you to make a complete payment for your small home, and even if you do get a mortgage, it will be much less than your existing one. Follow these tips and free yourself from the loaf of debt!