Joe Kulle and Katie Riley - Heritage Homes Real Estate



Posted by Joe Kulle and Katie Riley on 3/25/2018

With school loans at an all-time high, and growing for each passing generation, many homeowners are ready to shoulder off any and all debt as quickly as possible. If youíre in this camp and looking to aggressively pay down debt there are a few options available when it comes to paying your mortgage off.

Seller concessions.

Also known as seller contributions, are where the seller agrees to pay a portion of the closing fees for the buyer. This can include title insurance, inspection fees, and processing fees. If the seller is looking to sell the house quickly they may consider agreeing to seller concessions.

Government options for loans.

Energy-efficient Mortgage (EEM) was created to help homeowners renovate to add environmentally friendly features to their home. So if youíre looking to install double-pane windows or update insulation this could be the loan for you.

Federal Housing Administration (FHA) loans offer lower closing costs, smaller down payments, and a fair interest rate.

U.S. Department of Agriculture (USDA) loans can be applied to homes in rural areas, regardless of if they are a part of a farm. You may qualify to apply for zero down payment and loan payments will be at a fixed rate.     

There are also many local programs offered at the state and city level. A quick Google search for loan options for your area should set you in the right direction!

Plan to Refinance

Down the road, you can refinance for a fifteen year home loan instead of thirty. Youíll pay off your loan in roughly half the time and save money on payments towards interest.

Throw It Everything Youíve Got

Youíll want to check with your lending company first as some have penalties for payments outside of the loan terms. However, if possible, making an extra payment either regularly or time to time will help cut down the overall time it takes to pay off your loan.

For example, you can make one extra mortgage payment each year or tighten up your day to day budget and apply what your savings towards your loan. Many homeowners get creative and take on side gigs to create the extra cash necessary to make additional payments.

If you donít have that room to flex you can also always apply any bonuses, tax refunds or windfalls that come your way. This also makes a bigger impact when paired with regularly scheduled extra payments.

Aggressive debt payoff strategies arenít for everyone. And thatís okay! However, if youíre looking to live a debt free life and enjoy your home knowing itís been paid in total these tactics are for you. With some strategy and creativity, you can find plenty of ways to make the process go quickly and smoothly.