3 Ways to Pay Off Your Mortgage Faster
Finally buying your own home is a dream come true, however with home ownership comes the responsibility of a mortgage.
This can be a daunting prospect for anyone who has just purchased their new home, so it’s important to know how you can budget to accommodate for your repayments.
Ideally your ultimate goal is to completely own your home through paying off your mortgage as quickly as you can. Here are 3 ways to pay off your mortgage faster.
Budgeting is Key
As with any financial situation, the key to achieving great results is to work on an accurate and solid budget which takes into account all of your personal circumstances, income and expenses. When you have worked out exactly how much you have left over from your income after factoring in your expenses, you can begin to allocate funds appropriately. Without a good budget it is almost impossible to truly keep track of your finances and how you are spending your money. Your budget will be one of your greatest tools when it comes to increasing your mortgage repayments.
Once you have your budget worked out, you can organise to have a certain portion of your income transferred straight into the loan account. This helps to keep you on top of your repayments, and still allows you to contribute manually whenever you have any money left over. It also removes the temptation to spend the money on other things, and helps to keep you focused towards your goal of paying off your mortgage as soon as possible. The faster you pay off your mortgage, the less interest you will pay over the long term. There is also the added advantage of being able to redraw from your extra payments in the event of an emergency.
Consolidate Your Debts
When you have bought a house, another great option is to consolidate all of your debt into one single loan. Instead of having to worry about your credit card debt and other loans, debt consolidation allows you to combine all of your balances in the one place. This allows you to focus all of your efforts on directing as much of your money as possible into the one simple monthly payment. For more information on consolidation or other debt solutions, consider contacting the professionals at Fox Symes. Trusted by thousands of Australians, Fox Symes is one of the leading providers of quality debt help and advice to get you on track with your mortgage.
The ultimate goal of paying off your mortgage can be reached much faster by following these guidelines. Ensuring that you have a strong budget in place and directing your income straight onto the loan will help you to build a great foundation to move forward with. Remember to consult Fox Symes for all of your debt solutions, including the option to consolidate your loans. With all of this in place, you can focus on the dream of truly owning your own home, mortgage free!