6 (relatively) pain-free ways to pay off your mortgage faster

What are your goals? One of mine is to get rid of my mortgage for my family’s future and although it’s sometimes overwhelming it’s not impossible. So here are 6 (relatively) Pain-free Ways to Pay off Your Mortgage Faster:

• Round up your repayments

• Put your splurge $ on your mortgage instead

• Deposit your tax return

• Change your repayments to fortnightly

• Refinance your loan

• Put your raise/bonus on your mortgage

It’s a rare species of home owner who pay off their mortgage early. Home owners generally purchase a home in the prime of their life, when funds are needed for things like; furniture, cars, travel, lifestyle and family etc. It’s a bit like superannuation…why would you contribute to super when you’re young?

The answer is: Compound interest. It’s how the Bank makes money.

Yep, boring as bat-shit and you would’ve heard it before…however, you are currently paying non-deductible interest on the principle - so reduce the principle and you reduce the interest.

An example: A mortgage of $450,000 over 25 years at an average rate of 5% will cost you $339,190 in interest. Pay $500 per month off extra (or a lump sum payment from your tax return) reduces the loan to 18 years and saves $101,000…..what would you do with $101,000?                                                                                                                                                               

Don’t be overwhelmed by your mortgage, be brave and conquer it one payment at a time.

One of my goals is to get rid of the mortgage for my family’s future