Time to Start Aggressively Paying Off Your Mortgage

If you are in a healthy financial situation and have little debt, it’s time to start chipping, hacking away at your mortgage. Today’s market shows extremely low interest rates, which aren’t typically draining your bank account. With this being said, the urgency to pay it off has somewhat diminished for people. Only the real go-getters don’t want this hovering over them for years.

                Before you decide to go all in on killing your mortgage, there are a couple things you should do first. In order of importance, here are the places you need to fix your financial attention before tacking the beast.

 Kill your credit cards

                Pay off all your credit cards. Don’t get close; don’t say you’ll do it later; DO IT! Pay off the ones with low interest rates too. They goal is to own your home, not own a bunch of credit card debt.

Have a rainy day fund

                This is a side fund worth 6-12 months of expenses. You will need this money when you suddenly get laid off, or can’t work for some reason. It’s better to be safe than sorry.

Build your retirement

                Contribute the maximum amount you can towards your 401K, IRA, or whatever account you have. Talk to your accountant about it.

Get the kids to school

                This step all depends on your child situation. This matters on how many you have, how old they are, and what type of college enrollment expectation process they have. Forget the 529 plan; Obama is using your money to pay for other kids’ free community college. Have a wad of cash stashed somewhere for their college funds.

Stay healthy

                Invest in your health insurance. By this I mean long-term health insurance. It’s cheaper when you are younger as opposed to when you are older. It can take a much larger chunk out of your wallet when you are older and working less.

 Once this is checklist is complete, you are ready to grab your sword and shield to go fight the dragon known as Mortgage. Take a look at your budget, and calculate how much you can afford to spend each month. If it means you have to live on beans and rice for a while so be it.

Throw everything you can at your mortgage without killing yourself, or your family. Do side jobs if you have to. If you are lucky enough to pay twice in a month, make sure you tell the bank, this extra payment goes towards the principle of the mortgage. If you don’t specify, the bank will so cunningly use that money towards the interest.

Hope this article was helpful, and we wish you the best of luck!

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