Dave Asks… My new years resolution was to pay off my mortgage by the end of the year. How can I make it happen?

That is quite a goal – congratulations on your attempt. I would like to start off by saying that even if you don’t totally pay off your mortgage in 2012, you are still making strides in the right direction. By paying off your mortgage early, you will be potentially saving a great deal of money.

Now in order to make this early payoff happen, there are a few things you can do.

1.     Pay off your mortgage with a lump sum. If you are lucky enough to receive a lump sum of money this year, by all means put it towards your mortgage. Not only will you feel great about paying off your home but also you will no longer have to deal with the stress of making a mortgage payment each month. 

2.     Add more money to your monthly payment.  Take a little bit of money away from your monthly spending cash and put it towards your mortgage. A few hundred dollars added to your monthly payment will add up much more quickly than you expect.

3.     Make a few extra payments per year. If your financial situation permits, make it a point to take on a few extra mortgage payments a year. This is one of the quickest ways to reduce your mortgage down to zero. My suggestion is to plan it out and budget, this way you won’t have to stress about the extra payments.

4.     Consider re-financing your home.  If you are able to refinance for a lower monthly payment, you’ll free up that extra money to put towards your mortgage payoff. To learn more about refinancing options and your eligibility, click here.

5.   Sell your home for a more affordable one. Although this alternative may not seem ideal, it is something to consider. Downsizing your home to a more affordable option will eliminate your looming mortgage payments and leave you feeling much better.

I hope these tips will help you on your pursuit of achieving that new years resolution and saving money at the same time!

Meet Cheryl!

About Cheryl

As a successful business owner and community leader, Cheryl Braunschweiger is known and respected for getting things done with a degree of skill and enthusiasm that bring out the best in those around her - colleagues, clients and friends. The name of her business, ALMC Mortgage, reflects Cheryl's philosophy and personality. She says it stands for All Loans Must Close –a reflection of her determination to do whatever it takes to serve her clients. Cheryl has been in the mortgage lending business for 20 years. Read More About Cheryl
This entry was posted in Home Ownership, Mortgages. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *