For any homeowners out there, one of the biggest goals in life is to be mortgage-free. Once you have paid off your mortgage that’s it, you legally own the house, you no longer have to pay back the mortgage lenders, and you therefore will save a good few hundred Euros every single month. Not only that, but it’s also a great thing to brag to your mates about down at the pub. For some people, paying off the mortgage however, is a mere pipedream. For others, it is a very real possibility. To help show you how real it really is, here’s a look at 3 ways for you to pay off your mortgage faster.
Pay more each month
Let’s face it, with many properties costing more than one-hundred grand on the lower end of the scale, there are few people out there who could realistically afford to buy the house outright, there and then. Instead, they take out a mortgage loan and pay monthly instalments over the course of several decades, until the mortgage has been paid off, including interest. If however, you pay more than the minimum payments required each month, even by just 5o Euros, you’ll find that you have paid off the mortgage much quicker than you could have imagined. Many mortgage deals will allow you to pay extra each month, but if not, you can simply open a savings account, pay into that each month, and use that at the end of your fixed rate.
Cut back on unnecessary luxuries
Another useful tip for when it comes to paying off your mortgage early is to simply cut back on unnecessary luxuries, and instead set the money aside and use it to pay off the mortgage. If for example, you normally treat yourself to a coffee at a coffee shop on your way to work each morning, why not simply have a coffee at home before leaving? A regular coffee once per day may not cost much, but over the course of five days, the weekly cost adds up. Apply this same principle to a month, and even a year, and you could potentially have saved yourself a grand or more, which could be used to pay off the mortgage faster.
Find a better deal
When it comes to mortgages, many lenders out there are very competitive. This means that there are some great deals to be had. How the lenders make their money is by charging interest. The more interest they charge, the more you pay, and vice versa. If your current mortgage deal is at, say 3% interest, why not shop around and consider switching to a lender that charges 2% interest instead. Interest rates change constantly, and if you can find a long-term deal with a mortgage provider offering you a lower interest rate than what you are currently paying you’d be foolish not to go with them.