How to Be Mortgage Free Within Ten Years
Under normal circumstances, paying off a mortgage can be a lengthy process that takes up to 25 years to complete. However, there are some simple tips that a mortgage holder can follow that will shave off several years from the overall process, lowering payments and making it possible to get rid of the burden of a mortgage in only ten years. These are all tips offered by professionals who want to help their clients improve their finances and be mortgage free in as small of a window of time as possible.
One of the first tips to keep in mind for those who want to learn how to be mortgage free within ten years is to avoid opting in the plan of getting an open mortgage at a fixed rate. This can come with a higher interest rate overall, which spreads out repayment over a higher number of years. Another tip is to use biweekly or accelerated weekly payments, if that is a possibility within your repayment plan. This way, you can make an extra monthly payment each month, reducing the overall time of repayment, and potentially shaving off years from your contract.
As your financial situation changes, so should the amount of payments that you are making towards your mortgage. This is an active and lengthy process, and one that requires a bit of sacrifice in order to make the whole ordeal go by more quickly. For example, if you receive a 10% raise at your job, then you should accordingly pay 10% more towards your mortgage payments, rather than spend the extra money on temping items such as a vacation. This is a simple rule in order to become mortgage free within ten years. Save and find that money elsewhere. There is always a way to budget in all of the above.
The same idea would go for any bonuses that are received at work. A good rule of thumb to keep in mind is the rule of percentages; therefore if you currently are spending 25% of your income on your mortgage payments, if you get some sort of holiday bonus you should put a corresponding 25% of that towards repaying the mortgage within ten years. These are just a few of the little ways that you can set rules for yourself, in order to chip away slowly but steadily at that big overall amount that is due.
In addition, for those wondering how to be mortgage free within ten years, it’s a good idea to look at the overall budget that you are spending from month to month. If there is any extra money, allot it towards the mortgage instead of spending it on frivolous items or just having it sit there as floater money. Another way to round out the budget and find some extra money for mortgage payments would be to round up the monthly or biweekly amounts that are paid to a nice, even, round number. This may only be the difference of a few extra dollars each month, but all of those add up in the long run and can lead to financial independence.
Going to a financial professional for advice can be a great step in the right direction. Banks or other larger lending institutions tend to have their own interests in mind, but an independent financial professional will help work with you to achieve the results that you have been working for.
None of this is easy, and no one ever said that to those who are wondering how to be mortgage free within ten years that there is any cut and dry answer. However, many of these tips are simply a matter of budgeting and common sense that allow you to set aside those few extra dollars each month that can make all the difference in the long run. Paying off a mortgage can be easier than you would think, and achievable in much less time than the banks would have you believe. You can shave years of high interest rates off of the plan simply be following a few starter steps, and seeking out the advice of a professional to help put this in place.