As a realtor, I understand that a mortgage is likely the largest debt that most individuals will have

to repay in their lifetime. The thought of having a mortgage hanging over your head for up to 30
years can be overwhelming. However, with careful planning, sacrifices, and discipline, it is
possible to pay off your mortgage faster than expected, providing you with financial freedom and
peace of mind.


One effective strategy to accelerate your mortgage repayment is by making extra payments
whenever possible. Before implementing this approach, it is crucial to check with your mortgage
lender to ensure they allow borrowers to make additional payments. Some financial institutions
accept extra payments at any time, while others have specific guidelines or charge penalties. If
your lender permits extra payments, you can take advantage of this opportunity to shorten your
repayment period significantly.


There are several ways to make extra payments. For instance, if you come across additional
funds, such as a work bonus or proceeds from the sale of a property, consider using that money
to make an extra payment towards your mortgage. When sending an additional payment, it is
essential to include a note instructing the company to apply it to the principal rather than using it
for the next month's regular payment.


Another effective method is to divide your regular monthly payment in half and make payments
every two weeks instead. This approach results in 26 half payments, which equals 13 full
payments over the course of a year. By making one extra payment annually, you can significantly
reduce the overall repayment period, potentially paying off your mortgage years ahead of
schedule.


In addition to making extra payments, finding extra money in your budget can also contribute to
paying off your mortgage faster. By making simple changes to your daily habits, you can save a
significant amount of money over time. For instance, bringing your lunch to work and making
coffee at home instead of eating out and buying coffee on your way to work can lead to
substantial savings throughout the year. By allocating these saved funds towards your mortgage,
you can make a noticeable dent in your outstanding balance.


Refinancing your mortgage is another option worth considering if you aim to pay it off sooner. By
refinancing to a loan with a shorter term, you may qualify for a lower interest rate, potentially
saving thousands of dollars over the remaining repayment period. However, it is crucial to
carefully evaluate the terms and associated costs of refinancing before proceeding with this
option.


If you find yourself struggling to meet your mortgage payments, downsizing might be a viable
solution. If your children have moved out, continuing to make expensive mortgage payments for
a house with empty bedrooms may not be financially wise. Downsizing to a smaller home can
save you a considerable amount of money. In fact, you might even have enough funds from the
sale of your current house to purchase a new, smaller one outright, eliminating the need for a
mortgage altogether.


As a realtor, I strongly advise my clients to avoid getting in over their heads when it comes to
mortgage obligations. To prevent feeling overwhelmed, it is essential to make careful decisions
before purchasing a house. Building an emergency fund to cover several months' expenses,
paying off existing debts, and saving enough for a significant down payment are all prudent
steps to take. Furthermore, it is advisable to limit your mortgage payments to a relatively low
percentage of your monthly income. If possible, opting for a mortgage with a shorter term can
also lead to long-term savings.


Ultimately, the satisfaction and sense of liberation that come with paying off a mortgage are
unmatched. By making some lifestyle changes and setting small, realistic goals, you can work
towards repaying your debt years ahead of schedule. As a realtor, I am committed to providing
guidance and support throughout this journey, ensuring that you achieve your financial
objectives and enjoy the benefits of a mortgage-free life.

RAISING THE BAR FOR REAL ESTATE SERVICES

CONSIDER: Since I'm not a lawyer but your neighbor Realtor Associate, you should consult an
attorney and your CPA before making any decisions. Let’s start working together. Reach me at
305-776-5677 or register at www.juanmestre.com or email mestre.j@ewm.com.
Sourced and digested from several locations including but not limited to:
RisMedia for BHHS.com/blog, EWM Realty, Data from NAR & my knowledge