The first step in pay off your mortgage early is to make a commitment and decision that this is the right financial strategy for you. Once I confirmed with my mortgage provider that I wouldn't be charged a prepayment penalty, I began researching ways to pay off my mortgage faster. Assuming that rate could be achieved throughout, maintaining monthly payments at the higher level would save £81,373 compared to staying on SVR throughout and the mortgage would be repaid 7 years 10 months early.
As discussed, you could well find you'll save more by repaying your mortgage (and therefore reducing the amount of interest you'll have to pay) than you'd earn from interest on your savings. Alternatively, if you skip Step 2, you can make the monthly extra payment of $1000 to the HELOC.
The most difficult part of becoming a homeowner wasn't saving toward my down payment — it was purchasing a home in a mortgagepayofftips seller's market. As part of the plan to achieve financial independence , we have what we have dubbed Vision2020: To pay off our $550,000 mortgage in 5 years by 2020 at the age of 39 years old.
Example) You buy a house that costs 100k with a 30 year loan, you put 25k down and owe 75k, after 20 years you still owe more than $25,000, but because of inflation(I'll use 3%) it will be more like you only owe $15,000. A mortgage on our current house would probably be about $2,000 per month if we didn't put much down.
To justify not paying off your mortgage, you have to demonstrate a genuine desire to get ahead through investment. When granting new loans, lenders must assess whether or not you can afford to make the necessary payments. The credit card is a valuable tool in this program because by purchasing your monthly expenses on a credit card you are allowing your income to stay in the MCA longer.
The plan is to pay off both vehicles in 15 months and then I was considering paying off the mortgage early by applying $1,500 extra on the principle every month. Take some financial pressure off of yourself by trying to payoff your mortgage as early as possible to avoid refinancing.