Here are four ways to pay off your home loan quickly and save money.
If you’re like most working people, you probably see a decent chunk of money come back to you during tax season. Although most people use their returns to pay for non-essential luxuries, it’s usually smarter to put it toward your debts.
For older loans, refinancing may be a good option. Whether you have a mortgage or an outstanding home equity loan, you can likely get a lower interest rate today than you would have a few years ago if you refinance.
If you really want to pay your loan off as quickly as possible, you can consider getting an extra job on the side and putting all of the earnings from it toward your loan. Even a part-time job that allows you to work an extra 10 hours each week will allow you to reduce your loan amount by thousands each year.
Speaking of gig work, you can also make some extra money by renting out part of your home through short-term rental platforms like Airbnb. This method is especially good for young, single people working on paying off their first homes.
Put Your Tax Returns Toward Your Loan
If you’re like most working people, you probably see a decent chunk of money come back to you during tax season. Although most people use their returns to pay for non-essential luxuries, it’s usually smarter to put it toward your debts.
Depending on the size of your return, you can off several hundred or even a few thousand dollars each year this way. Over time, you’ll significantly reduce your loan and save large amounts of money in interest payments.
Refinance Your Loan
For older loans, refinancing may be a good option. Whether you have a mortgage or an outstanding home equity loan, you can likely get a lower interest rate today than you would have a few years ago if you refinance.
If you can secure a lower rate, you’ll be able to save a great deal of money over the life of the loan.
Take on a Side Job
If you really want to pay your loan off as quickly as possible, you can consider getting an extra job on the side and putting all of the earnings from it toward your loan. Even a part-time job that allows you to work an extra 10 hours each week will allow you to reduce your loan amount by thousands each year.
If you can’t arrange your schedule to accommodate a part-time job, consider driving for Uber or some other form of flexible gig work.
Rent out a Room
Speaking of gig work, you can also make some extra money by renting out part of your home through short-term rental platforms like Airbnb. This method is especially good for young, single people working on paying off their first homes.
Whatever profits you make from your rentals can be used to pay down the loan. Once it’s paid off, you can even continue to rent the space out to generate some extra income for yourself.
These are four of the best and fastest ways to pay your home loan off as quickly as possible. Paying your loan down will take time and require some sacrifices, but you’ll save thousands of dollars in interest payments if you go about it correctly.
These are four of the best and fastest ways to pay your home loan off as quickly as possible. Paying your loan down will take time and require some sacrifices, but you’ll save thousands of dollars in interest payments if you go about it correctly.
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