17 Actionable Ways To Pay Off Your Mortgage In 5 Years
Owning your home provides financial security for you and your family; it is an appreciating asset and will be worth more and more as time goes on.
A mortgage is typically the most substantial bill in anyone’s budget, and it can be difficult to imagine what life would be like if you kept that extra money rather than sending it to a mortgage lender.
Create A Monthly Budget
The best way to ensure that you know where your money is going is to create a budget. Creating a thoughtful, complete spending plan allows you to know exactly where your money is going each month so you can tackle that mortgage faster.
How To Pay Off Your Mortgage In 5 Years (or less!)
Purchase A Home You Can Afford
A good rule of thumb to help you get a “ballpark” idea of how much you can spend on a mortgage is to look for one in which the monthly payment is no more than 25% of your take-home pay.
Put Down A Large Down Payment
If you were to offer a 20% down payment, you can avoid PMI – private mortgage insurance. PMI is a type of insurance that protects the mortgage lender if a homeowner defaults on the mortgage.
Downsize To A Smaller Home
There are many positives to downsizing, including being able to minimize the large number of items that we have collected through the years, in addition to the savings we could realize by living in a smaller home.
Pay Off Your Other Debts First
To be able to make hefty principal payments on your mortgage, you should eliminate all of your other debt first.
Not Finding Ways To Save Money
It is essential to take your time to research this and learn more about the cost-cutting tools that you can use that will reduce your utilities and other things that you have to pay out for your household.
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