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How to Pay off your Mortgage Quicker

mortgage payment plan

When people decide to move to a new place, they generally have two options to decide from! They can either rent an apartment or buy a new house altogether.

Now, when it comes to getting a new house, a great majority have one option, a mortgage. Most people consider it quite an easy process (which it is NOT)! Getting a house mortgaged is easy but paying off the mortgage amount is something that can leave people in some amount of difficulty.

Should your mortgage in the first place?

There is a number of factors that you need to keep in mind while making the final decision of getting a house mortgage. The main consideration before you make this decision is the question “how will you pay it off?” If you do not have enough resources to pay it, you would not only get left out of your already paid installments but at the same time, you will have to forego your mortgaged assets as well. According to analytical reports on mortgage stats, almost thirty percent of Canadians own their own houses, and the rest of them either get their houses mortgaged or live in rented property. Of those people who live in mortgaged houses, at least twenty-five percent have to deal with the issue of not being able to pay off the mortgage. If you are looking for tips and tricks that will help you in paying off your mortgage quickly, read on!

Look for a house within your limits

The first rule to follow when you look for a mortgaged house is to make sure you choose a house that falls within your financial limits. If you choose a house that is way beyond your limits, it would definitely be difficult for you to pay for its mortgaged amount. Another thing that you need to keep in mind is to choose a mortgage deal in which you will have to pay more per month. Choosing such a deal will help you get rid of paying off the monthly mortgage amounts quickly. Even though you will have to pay a higher amount, you will have the edge of paying the final amount in an early timeframe.

Pay as much as you can

Once you choose a mortgage deal, just calculate efficiently the total amount you need to pay off and then decide the ways to pay it. For example, if the amount is quite high, just divide it into regular two weekly payments of what you can afford to pay. The more you pay, the earlier will it be paid off. Not only this (apart from your usual scheme of payment), if you pay an extra amount per year, you will be able to pay the final amount earlier than your mortgage payment plan.

Cut it short

Set yourself the shortest possible mortgage payment term. The advantage that you get from a shorter mortgage term is that you get to pay a lower level of debt and you pay off your debt early. This way, you not only have to pay a lesser amount than long term mortgage but you also get rid of the total payment early!