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If you have a 30-year loan, there are ways to pay it off eight years sooner and achieve your financial freedom.
When you buy a home, you can choose between a 15-year mortgage and a 30-year mortgage. Although most people would prefer the 15-year mortgage, they probably can’t afford the higher monthly payments that come with that option, and have to choose the 30-year mortgage instead.
Make one extra payment a year to shave 8 years off your loan.
However, you can turn that 30-year loan into a 22-year loan. Simply make one extra payment a year. If that is too much, break that extra payment into bite-sized bits and add them to your regular payment. You can also switch to bi-weekly payments to achieve the same effect.
Making that extra payment is a good balance for those who want a 15-year loan but can’t quite afford it. This easy tip helps you achieve financial freedom eight years earlier.
If you have any questions, just give me a call or send me an email. I would be happy to help you!