If you want to pay off your FHA mortgage provider faster than it is planned, just start planning and sticking to your plan. You do not have to be rich to pay off your mortgage. Any amount toward the principle that you can afford will help you save money.
REVIEW YOUR FINANCES – Take the time to review your finances to see where you can reduce your expenses. If you do not have extra money to put towards your mortgage, you can cut another expense and put that money to better use your FHA mortgage provider. If you can afford to pay an additional amount per month, your mortgage principle will be reduced and therefore you will save on interest and pay off your mortgage sooner. You will feel better paying an extra amount on your mortgage rather than buying another magazine subscription. Re-evaluate your finances and save yourself thousands of dollars a year. Stop wasting your money on things that are not important.
PAY AN ADDITIONAL PAYMENT PER YEAR – Make an additional payment per year in a lump sum or spread uniformly throughout the year by adding it to each payment. For example, if your monthly mortgage payment is $ 1,200, then you pay an extra $ 100 a month or make a $ 1,200 lump sum payment before the end of the year. When you make the additional payment your principle is reduced by this amount and therefore you pay less interest. Paying only one additional payment per year can pay off your mortgage seven years earlier than planned. The more you put on your mortgage, the sooner it will be paid.
Knowing how to pay off your mortgage quickly saves you thousands of dollars.
Pay twice a month – Ask your mortgage company if you can split your payment in half and pay twice a month. Paying half of your mortgage two weeks ahead each month will help you repay your FHA mortgage providerf earlier by decreasing the amount you owe in interest. Normally, you need to get permission from your mortgage company before you start paying twice a month.
Some mortgage companies may even charge you a fee to start this type of mortgage program.
If you need additional information on how to pay off your mortgage quickly look in the Resources section below. Knowing how to pay off your mortgage quickly can help you get out of debt sooner.
How to use a line of credit to pay off your mortgage
Use a line of credit to pay for your mortgage works like any other counterclaim for credit. Depending on your lender, you can set up a direct transfer of the balance or obtain financing and repay the mortgage yourself.
Check that the terms of your line of credit are advantageous compared to the terms of your mortgage. Judge the most serious interest rates and the duration of the payment. In many cases, the line of credit terms will be a lot worse deal than your mortgage.
Ask the lender for your line of credit if they arrange direct balance transfers. This means they pay your mortgage directly and add the cost for the balance of your loan. Also ask what the fee for doing this is. Many lines of credit entails a balance transfer fee of up to 6 percent, which is a lot when it comes to a FHA mortgage provider.
Choose direct financing if your line of credit lender will not directly transfer balances or charges too high fees. Arrange to make a withdrawal from your mortgage balance. Depending on your line of credit, you will have to do this through a service check or via a direct deposit into a bank account that you designate.
Wait for the funding to hit your account, whether this funding comes from a direct deposit or the clearing of your service check.
Write a check to your mortgage company or use automatic bill payment for the balance of your mortgage. If you can deliver this check in person, for example at a bank office, you may want to do it.
Tips & Warnings
Make sure your mortgage does not carry a prepayment penalty. Many mortgages charge extra if you pay the balance before the term of the mortgage is in place. This allows the mortgage company to make their money, even if you pay early.