Homeownership is the ultimate life goal for a lot of people, and it is far from unattainable for many. The true challenge is staying on top of your mortgage payments, especially if you're trapped paying your home off over 30 years. However, there are ways you can pay down your mortgage even faster.
Money coach Rachel Covert (@rachel_talksmoney) explains how in one of her latest TikToks. And it's not as complicated as you may think!
Essentially, if you take a little bit of money out of each paycheck you receive throughout the year, you'll have a chunk of cash that you can use to pay down your principal and lower the amount of interest you'll have to pay back. Keep this up over the course of a few years, and you'll have paid back your mortgage sooner than expected. Once you no longer have to worry about monthly payments, you can put the extra cash towards vacations, retirement or other investments.
Other TikTok users were appreciative of this insight. "OMG, that's only, like, $30 a paycheck for me 😳. Totally doing this," @mblgd1980 said. "Yes, I pay on principle every month for this reason," said _seoul4real_.
It also helps to have a financial advisor of sorts who can help you go through your options. Be sure to discuss this hack and determine how much quicker you can pay off your mortgage.