debt is by reducing the number of years on it. Reducing your overall Mortgage debt is very important if you want to have good Equity if you're going to sell your house for any reason. So how do you go about lowering the number of months or years you have to pay off your mortgage? It's really quite simple, but most mortgage brokers or Banks don't even mention it because, if you excercise this one option, it's like taking money out of their pockets! That one simple thing is: Paying off your Principle. (pre-paying). Here are a few tips that will get you on the right track right away:
1. Apply pre-payments to your principle early into your mortgage (first 6 or 7 years), when interests payments are higher and principle payments are lower, this will help you burn huge chunks of months off your mortgage schedule.
2. Although pre-paying large sums of cash to your principle will burn away your mortgage faster, making even small payments every month or two will chip away a few months off your mortgage every year.
3. Use bigger lump sums, like inheritance money or profit-sharing bonuses, to really burn away huge chunks of time off your mortgage debt, you'll be happy you did a few years down the road.
Remember, the earlier you start making or applying payments to your principle, the farther down you will be on the road to financial health.
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