Mortgage debt is one of the most expensive and, at times, most burdensome debt one can acquire during their lifetime. It’s plain to see that anyone who is paying on a mortgage would prefer to get out of this type of debt faster so that they may be able to own their home outright and save money.
However, there are very few individuals who can simply pay the entirety of a home loan out right, but there are ways in which one can get a more affordable mortgage. A typical 30-year fixed mortgage is popular among homeowners because it comes with a low interest rate, in many cases, and a low monthly mortgage payment for homeowners that qualify.
Yet, many people fail to realize that over the course of the 30 years this mortgage can cost almost double the original home loan amount when interest is factored in. A 15-year fixed rate mortgage can be more affordable for homeowners who want to get out of mortgage debt faster and do so with less cost overall.
While a 15-year fixed mortgage can come with a lower mortgage rate than the 30-year, the 15-year fixed mortgage often will have a higher monthly mortgage payment. However, since there is a shorter timeframe on this type of mortgage and the monthly payments are higher, homeowners are able to get out of mortgage debt faster and at less cost with this type of home loan.
Many homeowners will simply pay more each month than is required on their home loan payment so that they can get out of debt years ahead of schedule and at less cost, but sometimes a lender will charge a fee if a homeowner pays their mortgage off early. Homeowners are often advised to look at their financial situation and see which route will be best for them.
Paying more each month on a 30-year fixed rate mortgage, for instance, can be helpful in getting out of mortgage debt faster and this provides the security that if paying more money in one month is not an option a homeowner will still be able to meet the low mortgage payment on their home. However, not matter the option a homeowner chooses for getting out of mortgage debt faster they must make sure that it is financially responsible and within their financial means.