Many homeowners are often looking for ways to get out of mortgage debt fast so that they can own their home outright and avoid paying more money than they have to over the life of their home loan. Some homeowners will do this in the type of mortgage they choose while others will simply budget and pay more than their home loan payment requires.
For example, a 15-year fixed rate mortgage often comes with a low interest rate and can cost the homeowner much less over the life of the home loan. A common 30-year fixed rate mortgage can sometimes cost almost double what a homeowner originally borrowed for their home, after interest is factored in. A 15-year mortgage usually comes with a higher mortgage payment, but over the entirety of the loan a homeowner may be able to save a great deal of money and they can get out of mortgage debt in half the time.
However, some homeowners will simply pay more money on their monthly mortgage payment, which can add up over the years. Usually, any amount over the monthly payment that is required by a lender will go towards a mortgage principal, which when paid down will give interest a smaller amount on which to charge.
By paying only a few hundred dollars more a month, depending on your home loan, a homeowner may be able to save thousands of dollars or more and get out of debt years ahead of schedule. Yet, a homeowner needs to be careful when paying more on their mortgage than is required.
Some mortgage lenders may charge a penalty if you get a mortgage debt faster than planned so you need to make sure that if your lender is going to charge you a penalty that you are willing to accept this charge and that it will still be in your financial interest to pay your mortgage off early.