Many homeowners who were previously comfortable with making their minimum home loan payment each month have now changed gears and wish to erase their mortgage debt quickly. This, it is not uncommon for some homeowners, but homeowners who are finding themselves in a more stable financial position have sought out financial ways which they can use to erase their mortgage debt and own their home outright.
In the past, homeowners may have used refinancing as a way to get out of mortgage debt in a timelier manner. Some homeowners used a 15-year fixed rate mortgage in order to reduce the amount of time they were repaying their home loan, to oftentimes obtain a lower mortgage interest rate, and cut the overall cost they paid on their home loan. While 15-year fixed mortgages have been decreasing recently, there are still homeowners that use this mortgage, rather then a common 30-year fixed rate home loan.
Yet, many homeowners will obtain a 30-year mortgage simply because they have a better likelihood and getting a lower monthly mortgage payment. However, despite the fact that a 15-year fixed mortgage may bring a higher monthly mortgage obligation, homeowners who are trying to save money overall and can afford the higher payments have used the 15-year mortgage to get out of debt in half the time.
There are also homeowners who have been paying more money each month on their home loan, rather than just meeting their minimum monthly mortgage requirement. Homeowners understand that the longer a mortgage life, the longer interest has to build on their mortgage principal. Homeowners who are attempting to erase their mortgage debt quickly are trying to pay down their principal amount, obviously, but also save money by lowering the total amount on which interest can accrue.
Since economic hardships and employment troubles have plagued millions across the nation many homeowners have been unable to use these methods for erasing their mortgage debt. Some homeowners have simply been seeking modifications or a more affordable home loan payment each month just to keep a roof over their head, so it’s obvious these methods for erasing mortgage debt will not work for everyone. Financial advisors often suggest that homeowners take a closer look at their financial situation, the future of their employment, and make sure they can afford the costs that come with either refinancing or paying a higher monthly payment on their mortgage.
Again, while economic times are tough for many, erasing mortgage debt quickly has not been easy or something that can be accomplished by all. However, for those who have found themselves in a stable financial position and can afford to do so, using methods like refinancing for a 15-year mortgage or simply paying more on their monthly mortgage payment has helped these homeowners take giant steps towards erasing their overall mortgage debt.