Homeowners often look for ways to get out of mortgage debt fast as owning a home outright is the goal of the vast majority of homeowners. Many homeowners realize that common mortgages like the 30-year fixed rate mortgage often will cost more money over the long run than other loans and they wish to get out of this mortgage debt as quickly as possible and as cheaply as possible.
A 30-year fixed rate mortgage can cost almost double the original home loan amount for a homeowner over the lifetime of their home loan. Even at a low interest rate, the timeframe for this type of mortgage allows interest to build up on the principal amount and can be quite costly despite a lower monthly mortgage payment.
It’s for this reason that many homeowners choose a 15-year fixed rate mortgage in order to not only get out of debt faster but in a more cost-efficient way. On average, a 15-year mortgage will cost a substantial amount less than a 30-year fixed mortgage due to both the shorter timeframe and, in many cases, the lower interest rate.
There’s also the option for homeowners who want to get out of debt fast to simply pay more on their home loan each month. Some people will pay a few extra hundred dollars a month and this can go a long way in getting out of mortgage debt years ahead of schedule at less of a cost overall. Homeowners need to check with their lender though because many will charge a penalty if a homeowner pays the mortgage off early.
Homeowners need to make sure that they are financially able to take on the responsibilities of a 15-year fixed mortgage or simply paying more each month on their home loan. A 15-year fixed mortgage comes with a higher monthly mortgage payment than many other mortgages, but it will save money in the long run. However, when it comes to getting out of mortgage debt what matter is finding which route or which mortgage is going to be most affordable for a homeowner.