One of the best ways to succeed is by getting rid of any obstacle blocking your path to success.
Mortgages, or any other debts, are obstacles to financial success. Paying off your mortgages as soon as possible can benefit you in many ways, such as saving you thousands of dollars on interest payments over the years and buying you peace of mind.
Just like in chess, where you won’t enter a tournament with your hands tied behind your back, you shouldn’t enter retirement burdened by debt restraining you from moving around freely.
How can I pay off my mortgage as soon as possible?
Make extra mortgage payments now:
- Make an extra house payment each quarter.
- Round up your monthly mortgage payment and pay a few extra dollars every month.
- Increase your mortgage payment when you get a raise or bonus (instead of spending that extra money on non-essentials).
Any extra mortgage payment you make will not only help you finish paying off your mortgage sooner, but also provide a nice bonus in that it will save you extra interest payments.
You can refinance a long-term mortgage down to fewer years by increasing your monthly payments. Or, if you already have a low interest rate, save on the closing costs of a refinance and simply pay on your 30-year mortgage like it’s a 15-year mortgage. That means making higher monthly payments, but you’ll finish years earlier.
- Downsizing– Consider selling your home and use the profits to buy a less expensive property, without a mortgage.
Magnus Carlsen summarizes this idea with a good quote: “Some people think that if their opponent plays a beautiful game, it’s OK to lose. I don’t. You have to be merciless.”
Even the owners of the most beautiful mansion shouldn’t be paying off their mortgage until forever. Deal with your mortgage mercilessly. Pay it off as soon as you can, and remove the debt as an obstacle to your financial success.
For more information on how paying off your mortgage leads to financial success, click here.
Douglas Goldstein, co-author of Rich As A King: How the Wisdom of Chess Can Make You A Grandmaster of Investing, is an avid chess player, international investment advisor and Certified Financial Planner (CFP®).