It Can Be Done: Pay Off Your Mortgage Early
Have you ever dreamt of achieving the ultimate financial freedom? This doesn’t simply mean paying off your credit cards and completing all of your personal loan repayments. The ultimate financial freedom is owing nothing to no one. No loans, no store cards, no debts and no mortgage. It is that last one that is the killer, the thorn in your side preventing you from achieving that dream. However, all is not lost, and your goal of being totally debt free can become a reality.
Owning a home outright is the financial ideal of many. The mortgage repayments cease to exist, you own your own little patch of bricks and mortar, and you have a ridiculously large amount of disposable income left in your bank account at the end of each month. Take a look at how it can be done.
Repayments
Most home loan lenders will allow an overpayment of up to ten percent of the remaining balance of the mortgage each year. Be careful because if you pay any more than this, you will be subject to a higher lending charge. If you can make overpayments to your mortgage, say $200 a month extra on a $200,000 mortgage taken out over twenty-five years, you’ll pay your mortgage off nearly six years quicker. This will give you over half a decade more to enjoy the rewards of ultimate financial freedom. You could travel more, have a flutter on the stock market or simply begin preparing for an earlier retirement.
Budget
Although it may seem the most tedious of tasks, it’s vital that you take a look at your personal budget. Write down every single iota of an outgoing and see whether you can make any savings. Is it vital that you partake in a blueberry and cream cheese muffin on your way to work every Friday? Do you really need over a thousand channels on your cable TV only to scroll through them and find that you have nothing to watch? Streamline your outgoings and put every penny you can into a savings account to aid an extra repayment to your mortgage.
Big Ticket Items
If you’re used to having a new set of wheels sitting proudly on your driveway every twelve months, it might be time to reassess your priorities if paying off your mortgage is your main financial aim. Think about leasing or buying a less expensive used car. Take a look in the local classifieds and ensure that you locate a car that meets the NCAP safety rating criteria. This means that sourcing an auto accident attorney will be a last resort if you’re ever in a collision and you can feel secure in the knowledge that your family are safe when out on the roads.
The ongoing maintenance of a vehicle can be expensive, so you need to be sure you are purchasing a mechanically sound motor. At the same time, the new vehicles that you’re so used to depreciate the moment you drive them away from the forecourt. It’s a fine balancing act, but you need to find the appropriate motor that will allow you to make overpayments to your mortgage on a regular basis without you being out of pocket.
Heed some of this advice and make it your New Year’s resolution to pay off your mortgage early. Soon, you will be reaping the rewards of ultimate financial freedom.
