Many homeowners have been seeking ways to erase their mortgage debt faster so that they can simply own their home outright. Many homeowners have faced mortgage troubles over the past months and, as result, the reality that one may lose their home has become more apparent for many homeowners and more people are now looking at options which will allow them to get out of mortgage debt quickly.
One plan that many homeowners have used to erase their mortgage debt is to simply either refinance their home loan to a shorter term, or when they purchase a home, choose a home loan that will not be repaid over an extended period of time. Many homeowners have chosen the 15-year fixed rate mortgage as a way to get out of mortgage debt in a timelier manner than the traditional 30-year fixed rate mortgage.
While a 15-year mortgage can come with a lower interest rate and cost less overall than the 30-year mortgage, some homeowners do not like the higher monthly mortgage payment that is associated with this type of home loan. For this reason, some homeowners have simply chosen to budget and pay more on their home loan each month. Homeowners may be able to pay more than the minimum requirement, yet not as much as a monthly payment on a 15-year mortgage would require, and still get out of mortgage debt faster.
However, homeowners who choose this option need to make sure they look at their personal financial situation closely to make sure they can afford these higher monthly mortgage payments, figure out how long it will take to pay off their mortgage if they pay more than is required on their mortgage payment, and make sure they will not incur any penalties if they pay off their home loan early.
Homeowners can talk to their lender regarding these aspects, but when it comes down to simply making the payments many homeowners simply must look at their financial position before proceeding. Some homeowners may be able to afford more than their minimum monthly mortgage payment with little strain in other areas, but financial advisers often tell homeowners not to pay more on their mortgage if they are going to suffer financially when it comes to other debts. Becoming delinquent on other debts or straining one’s finances may offset any positives that come with getting out of mortgage debt faster.