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Nobody likes to have a mortgage hanging around their neck, but it's a fact of life when you buy real estate. This credit is the longest debt you'll ever face. It may seem like you'll be spending your life paying it back. But don't worry; there are some ways to get your real estate paid sooner. Then, in those years ahead, you can enjoy your money instead! Refinance For A Shorter Term Mortgage Wouldn't it be nice to pay that mortgage off in half the time? Well, with most lenders you can do just that. It involves refinancing your loan for a shorter term. The first benefit is obvious-You're done with it sooner! But, you also end up paying less over the long haul with a short term loan. The interest rates will be lower, and you'll have that debt off your back. The only thing is to watch out for fees and penalties. Most lenders charge you something for making the change, so check this out before you refinance. Toss A Little More Money Paying extra on your credit is a great way to end it sooner. Instead of just chipping away at your finance, you can knock chunks off of it. It won't make as dramatic a difference as refinancing, but it will get you finished several months to a few years sooner, and we could all use that. There are two ways to pay extra. You can make higher monthly payments or send an extra check for the month. Or, you can save it up and send a bonus check to your lender at the end of each year. The great advantage is that, instead of getting locked into these extra payments, it's totally up to you. If you're having a good year, pay more. If times are tough, keep the money for yourself. Just a warning-Review your lender's pre-pay policies. Some will penalize you for being nice and trying to pay sooner! Others have a maximum extra payment. This means that there is a limit to how much extra you can pay. Also, make sure these extra payments are going to the principal. This is a key part of the real estate debt game. Some sneaky lenders will apply it to future interest and other tricks that keep you from whittling it down. You can state this on the extra check that you send. Renegotiate Your Mortgage This is the most complicated way to cut it down, but it may save you lots of money over the long term. If interest rates go down, look into renegotiating your mortgage rate. Your monthly payments will go down and over the course of your loan, you'll end up paying less. Talk to your lender about refinancing and see what they offer you. Real estate experts say that if you can't lower your rate one percent minimum, it's not worth renegotiating. Wouldn't it be nice to get that all paid off sooner? These are just a few ways to pay your mortgage early, and then you can spend those later years enjoying your money. Before you do anything, check your real estate lender's pre-payment policies. Make sure they won't penalize you for paying early. In Louisiana, real estate can be paid sooner by refinancing for a shorter term mortgage. Another way is to pay extra on your credit to end it sooner. To know more, visit http://www.realestatelouisiana.com
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