A Honolulu property can be one of the most expensive purchases you would make in your lifetime. If you have taken out a loan to finance the purchase of a house or an apartment, it’s likely your mortgage is your biggest monthly expense. Especially if you’re only a few years into a 30-year loan, it may feel as though you’ll be making those payments forever.
As such, you may be looking for ways on how to pay your mortgage in Honolulu. Fortunately, there are a lot of ways to do this and you might even save money along the way.
However, there are some things your should consider before paying your mortgage ahead of time.
Should I pay off my mortgage?
Having the ability to pay off your Honolulu mortgage doesn’t always mean you should. Although it would be a big relief to get it over with, if you really want to know if it’s a good decision, you have to look at the math.
Before you ask yourself how to get out of debt in Honolulu, it would be helpful to ask these questions first:
- Do I have an adequate emergency fund of at least six months’ worth of expenses?
- Am I on track to save enough for retirement?
- Do I have little-to-no high interest debt, including credit cards?
If you could answer yes to all three questions, then paying off your mortgage might be a good financial decision. Just take note that some lenders charge a prepayment penalty; if yours does, be sure to factor in that cost, too.
Strategies to pay your Honolulu mortgage faster
Pay extra each month
One of the most effective ways to pay off your mortgage faster is to pay more than the monthly amount due. Although throwing in an extra $50 or $100 toward your monthly mortgage payment may not seem like much, it could add up to savings of thousands of dollars in interest over the course of a 30-year loan.
If you haven’t already, create a personal budget to help keep an eye on your spending habits, and identify ways to save money to add to your mortgage. However, you don’t want to overdo this and sacrifice other financial goals to pay down your debt faster. Mortgages are some of the cheapest loans out there, so be sure you’re paying off other higher-interest debt and investing before you start cutting back in other areas of your budget.
Schedule extra payments
Refinance to a shorter term
Although monthly payments will likely increase, this is an effective way to pay off your mortgage much earlier and save a ton of money on interest, especially if you also qualify for a lower interest rate.
Another way to settle your mortgage is to sell your house fast in Honolulu. You might want to consider a Honolulu cash home buyer.
RC Property Group, LLC is a no-nonsense house buying company that offers cash for houses in Honolulu, HI. If you need to sell your house fast in Honolulu, HI for cash, we’re local home buyers serious about buying your house. No repairs, no inspections, no agents, no fees, no commissions.
Our process does not involve getting pre-qualified by a bank in order to obtain a mortgage loan to purchase your property or wasting your time listing the property on the MLS, Zillow, Realtor.com, or any other listing platforms.
To find out more about our unique and alternative ways to sell your house fast in Honolulu, HI for cash, call us today: (808) 773-1415