1. Make extra principal payments as you are able to
Even making random extra principal payments to your mortgage can help you to reduce your mortgage debt. The extra payments are applied to your principal amount due and will reduce the total number of payments due to the mortgage company and thus reduce the interest you pay on the home.
2. Make consistent monthly extra principal payments
This allows you to reduce principal amount due every month and will reduce the total number of payments due to the mortgage company and thus reduce the interest you pay on the home.
3. Money Merge Account
This software along with a HELOC helps you make your monthly income work for you to help reduce your debt without adding extra principal payments out of your pocket.
4. If you will only be in house 5 years or less, consider an interest only loan – take difference and invest it for your future.
This allows you to use the compounding interest effect to work for you during those years when a traditional mortgage is paying interest only anyway.
5. Debt-stacking
This plan allows you to take the regular payment that you were making to another debt (that you paid off) and add it to another debt you are still making payments on. Once that other debt is paid off you add both regular payments you were making and add it to another debt that you still owe. This causes all debts to be paid off faster and thus you eventually are adding that to your mortgage and you haven’t affected your monthly budget.
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