Owning your own home is a great feeling. At Servus, we can help you become mortgage-free faster by shortening your mortgage with these payment options.
Make a larger down payment
Don’t borrow as much money in the first place and you’ll have that mortgage paid off sooner.
Increase your payment frequency
When you make your mortgage payment weekly or bi-weekly you pay more toward your principal, saving you thousands of dollars in interest and shortening the amount of time it takes to pay off your mortgage. If you choose an accelerated payment plan, not only do you pay more frequently, but you make extra payments over the course of the year.
Increase your payment amount
If your mortgage has an option to increase your payment amount, and you can afford it, boost your payments a little. The extra money goes directly toward your mortgage principal.
Make lump sum payments
You have a few options here. If you have an open mortgage you can pay money toward your principal at anytime. If you have a closed mortgage you may have pre-payment options that allow you to make annual lump sum payments. You can also make a lump sum payment when your mortgage term comes up for renewal, before your new term comes into effect.
Select a shorter amortization period
Decide how much you can afford to pay each month. If you can afford the higher mortgage payments then select a shorter amortization and save thousands of dollars in interest.