It’s an obvious statement that homeowners want to get rid of their mortgage debt as quickly as they can. Some homeowners choose a 30-year fixed rate mortgage in order to make their home loan monthly payment more affordable, but it would be difficult to find a homeowner who is content with paying on their home year after year and would not want to own their home outright.
There are ways in which a homeowner or homebuyer can begin a path that will take them to home ownership in a shorter period of time. Things like a 15-year fixed rate mortgage are obviously going to cut many years off of other mortgages, like the 30-year fixed rate mortgage, and it can save a homeowner a great deal of money.
A 30-year mortgage can cost almost double the original home loan amount after time and interest are factored in. It’s for this reason that many people choose a 15-year fixed rate mortgage and stand to pay much less over the time they are repaying their home loan. However, many people opt out of a 15-year mortgage because it does come with a higher monthly mortgage payment.
Some homeowners will simply pay more each month than is required of their home loan. By paying as little as $200 or $300 more per month on your mortgage, a homeowner may be able to get out of mortgage debt years ahead of schedule and with less cost overall. It is important to check your mortgage agreement to see if there will be penalties incurred if you pay your mortgage early.
While homeowners may have options that will allow them to make their home more affordable and allow them to get out of debt faster, it’s important for homeowners to make sure they look at their personal financial situation and make certain they can afford one of the options that will be available to help them get out of mortgage debt faster. Talking with your mortgage lender or a financial advisor is usually the first step to find out what route will be the best for your personal financial situation.