How to Pay Off Your Mortgage Faster
Acquiring a home stands as one of the most consequential financial choices in life. Considering that a mortgage could be the most substantial loan you ever undertake, the question arises: How can you expedite the repayment of your mortgage?
Most people know about the traditional ways to pay your mortgage faster :
1) Increase your minimum mortgage payment
When you increase your mortgage payments above the minimum by even a small amount, you will pay off your mortgage more quickly and save money on interest.
or
2) Make Additional Lump Sum Payments
A lump-sum payment is an annual percentage limit that you are permitted to make against your mortgage. The percentage is somewhere between 0 and 30%. Making a lump-sum payment always saves you money on interest.
Ensure you don’t exceed the repayment amounts permitted by the terms of your contract. Your mortgage contract will tell you how much you can increase your annual payments before incurring penalties.
The issue with these traditional methods is that they often demand more money from the homeowner, which may not be readily available
We have a strategy that homeowners can use right now! Your mortgage payment holds the biggest opportunities. A regular mortgage payment only serves to pay interest to the bank, and a portion goes towards paying off the principal on your home. This is the portion that belongs to you. There is a way we can use that principal. You can generate valuable and growing tax deductions that will help you eliminate your expensive mortgage faster with money you wouldn’t otherwise have.
You will need to ensure you have a re-advanceable mortgage product, where each month when you make your regular mortgage payment, a line of credit increases proportionally. You then use that line of credit to borrow against it and invest with a reasonable expectation of generating income. From there, you can deduct the interest from that loan, creating a tax deduction. Annually, apply this tax refund as a pre-payment on your mortgage.
This strategy enables you to accelerate your mortgage payments without needing to dip into your own savings or income by put in additional hard working hours.
If you want to have more information on this strategy, please join our group Burn your mortgage.