Mortgage Hack #2
Dollar-a-month
If your income rises gradually but steadily over time, the dollar-a-month plan should be financially realistic.
How it works: Increase your contribution by $1 each month. Just make the first payment of $900, the second payment of $901, and so forth. You could cut the length of your mortgage by eight years if you had a $150,000 loan and a 30-year, $900 per month mortgage with a 6% fixed interest rate.
Surprise money
How it works: Use unanticipated funds to aid in loan repayment. This is the simplest way to pay off debt faster, including a mortgage. This money is probably budgeted for on a monthly or annual basis, making it simpler to use in this situation.
Examples of surprise money: work bonus, tax refunds, birthday present, etc.
Beware of prepayment penalties. Consult with your lender.
Reference: 2022 Keller Mortgage LLC and www.nationwide.com