By Nelson Smith
I can talk from experiance because when l was 23 my goal was to pay off my mortgage in 5 years the amount at the time was $60,000 dollars which was taken up a large percentage of my income at that time.
This goal wasn't going to be easy because my income wasn't that great so the only way l could pay it off was by getting additional work.
My plan was to save $1000 dollars extra a month which l paid off my mortgage at the end of the year you do this because interest is calculated on the amount you owe at the end of the financial year so your payments will be reduced.
We did have to pay a small sum to the mortgage company for admin costs you just need to check not all do so if you see my plan you need to cover all your general outgoings and still find the additional money to pay of your mortgage in your own time frame so if you do the sums it works out.
$1000x12month=$12000x5years = $60,000 But what you got to remember your mortgage payment will reduce after year one so that extra money can go on bring the loan payments faster so this is the best way to pay off your home loan mortgage.
Just remember it take's planning and patience and determination to stick with it you can do it if, l can you can then when you pay off that mortgage buy another property and rent it out and create passive income for your old age.
1 comment:
Since the loan is secured, the rate of interest is very low as the retrieval of the loan amount is assured. The borrowers can however research through the online mode for these loans.
Mortgage repayment calculator
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