Paying off your mortgage can feel like an enormous goal, and it is when benchmarking it against your immediately available resources. For example, if you have a $700,000 mortgage, and a set income of $100,000, from which comes tax, mortgage repayments, costs of living etc, then taking that $700,000 down to zero seems almost impossible. But there are resources available to you that will allow you to pay your mortgage off faster and put you in a powerful position for future investment and retirement. Here are some moves you can make to reduce and pay off your mortgage.
- Have an Investment Plan
Even if you only have one property – the one you live in. In fact, when your investment portfolio is small, it is even more important to use every resource as best you can. Decide whether any investments you may have outside of your property are effectively allocated and if not, take action on them sooner rather than later. Consider your existing mortgage structure, and whether it is the best offering available in the market. Remember, if you can save money on your mortgage and allocate your funds more effectively, then you can shave months or even years off your repayments.
- Use Your Equity
Obviously, you can't have an investment portfolio that will assist in paying off your mortgage if you are only putting a few hundred dollars aside each month to grow a small savings portfolio. So, you need to use all available resources to give your repayment plan a boost. You are probably familiar with equity, the difference between what you owe on your mortgage and the value of the property. Using a number of tactics, you can free up that equity and use it to build an investment portfolio designed to pay off your mortgage. Through realising the latent value in your property, you can create something of value without needing to have a multi-million dollar salary.
- Smart Investors Hire Smart People
And so should you. Paying off your mortgage promptly is a worthy and exciting aspiration. But you also have a full-time job, a family and a life to live. By definition, you will never know as much as experts in real estate, finance and the law. Don't try to get smarter than people who have dedicated their lives to certain disciplines, just pay them to do it for you. While it may seem expensive at the time, it will always end up cheaper in the long run, and save you hours in research and mismanagement.
Paying off your mortgage isn't as impossible as many people think. But it does take courage and action. As with anything else, there will always be people who will tell you not to risk anything, and you should always take the time to seek out the best advice possible before taking any action at all. But remember, in the end, you will need to act if a change is to occur, and the sooner, the better.