We all are interested in not only staying afloat during these difficult times but in doing well in life. One of the largest investments people make is the purchase of a family home. Hey, in some cases this is acquiring the American dream. To pay this home off early will put money in your pocket in the short and long ter.

Yes, deciding to pay off your mortgage is good idea. First of all, it will give you cash in your pocket as soon as you make that last payment. I mean lots of cash to save for your child’s education, to buy income property or raise the amount of money in your bank account. Sounds good, doesn’t it? It also puts money in your pocket in the long term by giving you more equity. If your home is paid off then you can borrow close to the amount of the appraisal or you can open a line of credit to use when, if and how you need it.

Look at your cash flow as well as your mortgage payment. Do you have any amount of cash that you could add to your present mortgage? Any amount will help because it will go straight toward the principal reduction. For clarification, when you make the regular payments, the bulk of the cash goes toward interest and a small amount goes toward the principal. To see the exact amount, look at your bill and review it carefully.

Now, consider working overtime at your present job or take on a part time gig. Then apply this money to paying off your mortgage early. Not only will this improve your bottom line but it will give you more ammunition for your mortgage pay off plan.

If you’re really serious about reducing your debt even further, call your financial institution. There are some programs available in which you can work with your lending agency to develop a program in which you accelerate the payments. One of our clients pays a double payment four times a year which is a great reduction. Whereas another client pays his mortgage every two weeks. Now, if you choose this method, you need to be serious because this is probably legally binding. Check with your institution or attorney regarding legalities.

In closing, you can pay your mortgage off sooner than the mortgage maturity date. Simply increase payments by a small or large amount or work out a deal with the lender to increase payments. Whatever you decide, paying your mortgage off sooner than your maturity date is a great idea and worth the sacrifice.