Are you looking to pay off a mortgage quickly in southern New Hampshire, but don’t know where to start? We’re here for you.
A 30-year mortgage can sometimes feel like you will be spending your lifetime making mortgage payments. Fortunately, there are many strategies you can apply to pay off your mortgage much faster.
Make Biweekly Payments
Instead of making a mortgage payment monthly, split it in half and send it every two weeks. You will hardly see a difference in terms of your bank account, but by the end of the year, you will have made 13 payments instead of 12. On a typical 30-year loan, this strategy will shave four to six years off the term.
Put Your Windfalls Toward an Extra Payment
A windfall is a large, and many times unexpected, financial gain. Windfalls can include a tax refund, a bonus from work, an inheritance check, payout from a lawsuit settlement, a successful property sale, or even winning a lottery ticket. If you receive this type of extra income, consider putting it toward an additional mortgage payment. Even if you can only make one more payment each year, you can make a significant reduction in the term of your loan.
Apply Any Extra Money to Principal
Another way to quickly pay off a mortgage in southern New Hampshire is to apply any additional funds to principal. If you can’t afford to make an entire extra payment all at once, just pay as much as you can each month. A good strategy is to round your payment up to the nearest hundred. When paying extra, make sure that you apply the money to the principal. This will help reduce your mortgage term and interest amount.
Refinance Your Mortgage
Refinancing is the process of paying off your current mortgage and replacing it with a new one. There are a few ways you can use refinancing as a tool to help you pay off your debt faster.
- Lower rate– A lower interest rate will decrease your payment amount. Continue to pay the same amount as you were previously, but put the excess toward principal.
- Shorter term- Shortening the loan’s term will result in a faster payoff. While it seems that cutting your term in half from 30 to 15 years would double your payments, this is not the case. Use a New Hampshire mortgage calculator to determine how much you can save through refinancing.
- Converting from an adjustable to fixed-rate- If your current New Hampshire mortgage has an adjustable rate, consider switching to a fixed rate to help you pay off your mortgage quicker. Converting rates may save you money in the long run as you no longer have to worry about future interest rate hikes.
Recast Your Mortgage
If you come into a lump sum of extra money, consider putting it toward your home loan and recasting your mortgage. With recasting, the term stays the same, but the monthly payment is lowered based on the reduced principal. After your payment is lowered, continue to pay the same amount you were beforehand to expedite the payoff process.
Need to Sell Your House Quickly? Contact NH Home Buyers
If you need to pay off a mortgage in southern New Hampshire quickly, consider selling your home to NH Home Buyers. From Amherst to Atkinson, to Bow and Dover, we buy houses in the Southern New Hampshire area and can offer you a fair price for your property without fees or commissions. Our process is quick, and you will walk away with a check in-hand soon to apply to a new home. Contact us today for more details.