This content includes information from experts in their field and is fact-checked to ensure accuracy.We are committed to bringing you researched, expert-driven content to help you make more informed decisions as it pertains to all aspects of your daily life. We constantly strive to provide you with the best information possible., 94 percent of surveyed Americans say that owning a home is part of the American Dream.
"This could lead to more affordable remortgaging options than if you hadn't overpaid," he adds, noting that people who overpay on their mortgage, even by just a couple of hundred dollars per month, can shave years off their mortgage term and save thousands in interest. "By applying windfalls directly to your mortgage balance, you automatically reduce the outstanding debt, thereby decreasing the amount of interest accrued over the remaining loan term," he explains."This approach accelerates your mortgage repayment and can significantly shorten the time required to pay off the loan in full.
"Take whatever increase comes your way in your annual income and apply it to pay your mortgage," advises Kullberg. "PMI is an additional cost that adds to your monthly mortgage payment," he explains."By avoiding PMI, you can lower your monthly expenses and allocate more funds toward your mortgage principal, accelerating the repayment process."