Do you want to pay off your Knoxville mortgage early?
If you’re like most Knoxville homeowners, the answer is probably a resounding yes. The sooner you can be done paying interest and owing your mortgage company any more money, the better.
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The good news is that paying off your Knoxville mortgage is not as hard as you may think. In this post, we’ll share the secret of how to pay off your Knoxville mortgage.
The Secret To Paying Off Your Knoxville Mortgage Early
If you make one Additional Principal Payment per year, you can cut years off your Knoxville mortgage. Just that one additional payment per year can save you thousands of dollars in mortgage interest. The crazy thing is that many homeowners don’t realize just one additional principal payment can shave years off your mortgage.
The crazy thing is that many homeowners don’t realize just one additional principal payment can shave years off your mortgage.
Here’s an example of how this can play out:
If you have a mortgage of $150,000 with a 4% interest rate, your principal payment would be $716. If you took this mortgage out this year, you would expect that you would pay if off by 2048. With just one additional principal payment a year, you would shave four whole years off your Knoxville mortgage.
How To Make That Additional Payment Per Year
It may seem daunting to have to come up with an additional principal payment per year. The thing is though, if you divide it up over the course of a year. It’s not as daunting as you may think.
Going with the example we used above, by just saving an additional $1.96 per day, you can come up with that money very easily. Or, that’s just $59.66 per month.
Here are a few additional ways to come up with an additional principal payment a year. (Don’t worry, it’s not as hard as you may think.)
Cut The Extras From Your Daily Life
Do you get a morning coffee every day? Do you eat out multiple days a week for lunch? Or, do you have a gym membership that you never use? If so, these are easy items that can be eliminated in order to make an additional principal payment every month.
Take a look at your monthly budget and see what you can easily cut. Every person has those unneeded extras in their life, like a shopping habit or cable they don’t really use. By looking at your budget and eliminating what you don’t need. You will find that it’s easier than you think to cut out some unnecessary extras.
Make It Easy To Save
When they saving is automatically done for you, it makes it really easy to save some extra money to make an additional principal payment. When you automatically transfer money into another savings account, it makes the process easier.
Most banks have a way of automatically transferring money into a different account. Set up a separate account that is just dedicated to making your additional principal payment each month. In the previous example about, it would be as little as $60 a month. So, you could just set that small amount aside every month.
Don’t Spend What You Don’t Have
It can sometimes be tempting to splurge on a new clothing purchase or the latest gadget, but it can be extremely important to not spend money you don’t have. If you don’t have the funds to cover the purchase, don’t be tempted to charge it on a credit card.
Before making a large purchase, you should have the funds to cover it with enough left to cover your monthly bills. It can also help to leave your credit cards at home if you’re not going to need them that way you’ll be less tempted to splurge for no reason.
Bottom Line: One Extra Payment Isn’t As Hard As You Think
When you break an additional payment up each month, it’s much easier to make that additional payment. Figure out how much extra you need to set aside and you’ll save yourself a bunch of money.
Are you interested in buying a West Knoxville home for sale? If so, please do not hesitate to let us know. Rick can be contacted at 865-696-9002 or via email at [email protected]. Kati can be contacted at 865-696-1888 or via email at [email protected]. Also, be sure to check out our West Knoxville Home Search Page to see what homes are for sale in the area.
