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If you'd like to know what a mortgage is all about, it's basically a type of loan that's used to help people pay the property they hold ownership of. Needless to say, like with any loan, a mortgage has to be paid off, which can be done in various spans of time. Bob Jain can agree, but you might be curious to know how this payment can be made sooner. Here are 4 things that you should know, if you'd like to clean your hands of this debt.
If you'd like to know how to pay off a mortgage, understand that paying more than the principal works in your favor. One of the reasons for this, according to Bob Jain, has to do with the interest rates that various loans possess. This is no different with mortgages, which means that sooner payments can reduce the interest in question. You might also be able to take advantage of a nice bonus, depending on what your loan entails.
You should also know that switching your payments to bi-weekly can work in your benefit, too. Keep in mind that not everyone will be able to do this, especially those who are mindful of their financial situations. Regardless, if you can afford to do so, bi-weekly payments will allow you to cover your mortgage in full much sooner. This is another useful tip that companies like Bob Jain Credit Suisse might be able to suggest.
Another way to help you pay off your mortgage sooner is by incentivizing yourself to do so. Even though this is more psychological than anything else, many people tend to be more willing to make payments when they reward themselves. According to an article on Clark Howard, the author rewarded himself with $100 of spending money for every $5,000 he paid off. While you might not want to go to such lengths, a small reward can boost morale.
Lastly, did you know that purchasing a smaller home can help you benefit from a reduced mortgage? Keep in mind that while you might want to live in a luxurious home, there's nothing wrong with going with a more modest situation. Not only will this result in a sense of comfort, but your mortgage won't be quite as extensive as you might have anticipated. Keep this in mind if you are in the process of purchasing a home for the long term.
If you'd like to know how to pay off a mortgage, understand that paying more than the principal works in your favor. One of the reasons for this, according to Bob Jain, has to do with the interest rates that various loans possess. This is no different with mortgages, which means that sooner payments can reduce the interest in question. You might also be able to take advantage of a nice bonus, depending on what your loan entails.
You should also know that switching your payments to bi-weekly can work in your benefit, too. Keep in mind that not everyone will be able to do this, especially those who are mindful of their financial situations. Regardless, if you can afford to do so, bi-weekly payments will allow you to cover your mortgage in full much sooner. This is another useful tip that companies like Bob Jain Credit Suisse might be able to suggest.
Another way to help you pay off your mortgage sooner is by incentivizing yourself to do so. Even though this is more psychological than anything else, many people tend to be more willing to make payments when they reward themselves. According to an article on Clark Howard, the author rewarded himself with $100 of spending money for every $5,000 he paid off. While you might not want to go to such lengths, a small reward can boost morale.
Lastly, did you know that purchasing a smaller home can help you benefit from a reduced mortgage? Keep in mind that while you might want to live in a luxurious home, there's nothing wrong with going with a more modest situation. Not only will this result in a sense of comfort, but your mortgage won't be quite as extensive as you might have anticipated. Keep this in mind if you are in the process of purchasing a home for the long term.
About the Author:
Please consult Robert Jain Credit Suisse if you would like additional financial guidance from the likes of Robert Jain.. Also published at 4 Mortgage Payment Pointers, With Bob Jain.
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