If you’re interested in paying off your mortgage early, there are a couple of ways you can do it.
Your interest rate varies depending on when your mortgage went into effect, but most mortgages are on 30-year fixed notes, and one way you can pay that term off in just 17 years is by making one additional payment per year. In this case, a lot of my clients simply take their yearly tax return and use it to make this payment.
If you have additional disposable income at the end of each month, you can also pay off extra chunks of your mortgage each month. For example, if your monthly mortgage is $2,000, you can pay an additional $100 or $200 payment.
Before you commit to anything, though, you should verify whether paying off your mortgage sooner is the best option from a strategic standpoint. When interest rates are so low (right now, they’re hovering in the high 3% range), if you can make a better return in the market or through another business venture beyond the 3.5% or 4% mark, it may be more beneficial to simply not pay off your mortgage.
In any case, be sure to reach out to your financial advisor to find out which strategy is best for you. If you have any more real estate questions, don’t hesitate to give us a call or send us an email. We’d love to help you.