If you'd like to know what a mortgage is all about, it's basically a type of loan that's used to help people pay the property they hold ownership of. Needless to say, like with any loan, a mortgage has to be paid off, which can be done in various spans of time. Bob Jain can agree, but you might be curious to know how this payment can be made sooner. Here are 4 things that you should know, if you'd like to clean your hands of this debt.
To start off, pay more than the principal, if you have the means to do so. When you consider the reasons people pay off loans earlier, most people tend to cite interest rates. This is no different when it comes to mortgage, which means that it's in your best interest to pay more than the minimum on a regular basis. You might also benefit from a nice bonus in the future, which is one of the best perks that Bob Jain can draw your attention to.
Did you know that you can change your payments to bi-weekly, too? Consider that while not everyone will be able to do this, due to financial reasons, others might want to take part in this. After all, when you make payments every two weeks, as opposed to each month, you stand a greater chance of covering your loan sooner. This is another useful tip that companies the likes of Bob Jain Credit Suisse can tell you all about.
You should also look at some of the more psychological steps that can be taken, too. Clark Howard posted an article of mortgage payment tips, too, and one that stood out to me was the author rewarding himself. Simply put, for every $5,000 he paid off, he would give himself $100 that he could spend however he'd like. Not everyone will be able to account for such an account, but this doesn't mean that you shouldn't incentivize yourself to keep paying.
Finally, you might want to look into purchasing a smaller home. Granted, not everyone will be willing to do this, especially if they enjoy more luxurious spaces to live. Nonetheless, those who aren't against going with a more modest option might see the benefits in this. Not only will you be able to live in a comfortable home, but you won't have to cover for a mortgage that's as big as some of your peers' might be.
To start off, pay more than the principal, if you have the means to do so. When you consider the reasons people pay off loans earlier, most people tend to cite interest rates. This is no different when it comes to mortgage, which means that it's in your best interest to pay more than the minimum on a regular basis. You might also benefit from a nice bonus in the future, which is one of the best perks that Bob Jain can draw your attention to.
Did you know that you can change your payments to bi-weekly, too? Consider that while not everyone will be able to do this, due to financial reasons, others might want to take part in this. After all, when you make payments every two weeks, as opposed to each month, you stand a greater chance of covering your loan sooner. This is another useful tip that companies the likes of Bob Jain Credit Suisse can tell you all about.
You should also look at some of the more psychological steps that can be taken, too. Clark Howard posted an article of mortgage payment tips, too, and one that stood out to me was the author rewarding himself. Simply put, for every $5,000 he paid off, he would give himself $100 that he could spend however he'd like. Not everyone will be able to account for such an account, but this doesn't mean that you shouldn't incentivize yourself to keep paying.
Finally, you might want to look into purchasing a smaller home. Granted, not everyone will be willing to do this, especially if they enjoy more luxurious spaces to live. Nonetheless, those who aren't against going with a more modest option might see the benefits in this. Not only will you be able to live in a comfortable home, but you won't have to cover for a mortgage that's as big as some of your peers' might be.
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