5 Essential Ways to Ensure Your Mortgage Payments Become a Thing of the Past!
It doesn’t matter what age you are, but the prospect of retiring sans the worries of a mortgage retirement is a dream that many people visualize on a regular basis.
Indeed, there’s nothing sweeter than not having to stress over the monthly mortgage payments that can dent one’s finances. Frankly, after spending years of punctually meeting all the payments to do with your mortgage, it’s the least you deserve, right?
Nevertheless, there are a number of feasible ways that you can employ to ensure that your retirement is successful without having to fret over your mortgage. That being the case, here are five essential ways you can achieve this lifelong dream and secure a successful retirement without any mortgage complications.
Start by Making Extra Payments on Your Mortgage
Over time, a couple of hundred bucks here and there directed to your mortgage can result in thousands of dollars being eliminated as interest as well as reducing the number of years that you have to deal with your mortgage repayment.
Nevertheless, the trick behind this ingenious system is to discover ways in which you can minimize household expenses without really causing a downgrade in your lifestyle.
Then, from the modest savings that you have made from these budget cuts, you can then direct the extra income to your mortgage.
For starters, you can start by replacing any old-school incandescent light bulbs that you have in your house for LEDs, which mind you save up to $100 a year in terms of electricity costs!
Indeed, a little goes a long way. Say you have a mortgage of $225,000 with a 5% interest in a span of 30 years.
So if your monthly payment is roughly $1,200 (not factoring in insurance and taxes), it means that you’ll have to pay roughly $210,000 in interest on the home loan in the next 30 years.
However, if you save as little as $100 and direct it to your mortgage every month, you will have saved over $40,000 in interest and be able to retire the loan 5 years before the 30-year-period.
Refinancing Your Mortgage
One of the most legitimate ways of reducing your mortgage is to refinance it. You can do this by selecting a refinancing option that has a lower rate albeit a lengthier or shorter period of time.
One of the benefits of such a setup is that you will have less of a strain on your bank account, as well as a reduction in the monthly payments that you’ll be making.
To eliminate your mortgage early on via refinancing, it would be wise to first switch to a shorter period in terms of loan repayments. This will minimize the interest as well.
Downsizing Your House
Just think about it. During your retirement years, is it really necessary to have a massive living room, a ginormous dining room yet you rarely have a lot of guests, as well as two separate rooms that no one ever sleeps in? If the answer is no, then perhaps it’s high-time you downsized.
The great thing about downsizing to a smaller home is that you can get extra cash to pay for a new, albeit more affordable smaller home. Which means you can say goodbye to your mortgage!
Move to a Less-Expensive City
Is your hometown a little over-the-top in terms of expenses? Then perhaps it’s time you took your retirement years to somewhere cheaper.
Sure, you’ll have to make a couple of sacrifices, but it’s a given that you’ll make up for some of these financially.
Indeed, some of the finest places to retire are areas that have the most affordable real estate coupled with a number of activities for leisure and entertainment.
Rent a House Instead of Owning One
One of the surest ways to retire without owning a mortgage is to sell the current home that you have at a profit, and then direct the proceeds to renting a comfy apartment during your retirement years.
In fact, there is a major difference between renting and owning a house.
One of the advantages of renting is that there are no property taxes to pay, no leaky roofs to have repaired, and rent is usually much cheaper than the mortgage payments that you make every month!
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