How to pay off your mortgage in 5 – 7 years

Revolving credit – The Secret strategy to help you  Pay Off Your Mortgage  fast in 5–7 Years

Paying off your mortgage in 5 to 7 years might sound too good to be true, but it’s not. You can save yourself thousands of dollars and significantly reduce your debt if you follow a few simple strategies.

If you’ve ever scrolled through Instagram or watched a YouTube ad, you’ve probably seen those mortgage brokers promising that they can help you pay off your mortgage in 7–10 years and save a fortune on interest. Sounds great, right? But before you get sucked into their $5,000 special systems, let me save you that money and share the real ways to achieve this goal for free.

In the next 10 minutes, I’ll show you how to pay off your mortgage faster and keep more money in your pocket.

1. Increase Your Payments

The first and most common method is simply increasing your repayments. For example, let’s say you have a $450,000 mortgage with a 6.5% interest rate, and your current loan term is 30 years. Right now, you’re paying around $820 per week.

Now, here’s the shocking part: over the life of the loan, you’ll end up paying $660,000 back to the bank. This means that a significant portion of your payments is going toward interest—far more than the original loan.

But what happens if you increase your repayments? Let’s say you decide to pay off your mortgage over 15 years instead of 30. Your weekly repayment would jump to $1,450, which is an extra $630 per week. It sounds like a lot, but here’s the kicker: by doing this, you could save over $420,000 in interest! You’d also pay off your mortgage nearly 15 years earlier.

Sure, that extra $630 a week might be a stretch, but remember, you were going to pay that money to the bank eventually. Paying it off early saves you a massive amount of interest, so it’s worth considering if you have the means.

2. Use Pay Rises Wisely

Not everyone has an extra $630 to throw at their mortgage, especially in the short term. If this sounds like you, there’s another strategy: use your pay rises to increase your mortgage payments. On average, your income should increase by about 4% per year, but your mortgage payments stay the same unless you actively increase them.

For example, let’s say your weekly repayment starts at $820. If you get a 4% pay rise one year, you could increase your weekly payment to $854. The following year, with another 4% pay rise, you increase it again to $888. Over time, these small adjustments add up. In fact, if you keep doing this consistently, you could save 12 years off your mortgage and reduce your interest payments by $28,000.

This strategy works because you’re gradually increasing your repayments as your income grows, but without stretching your budget too far.

3. Take Advantage of Interest Rate Drops

Interest rates tend to fluctuate, and while they’re high right now, they could drop in the future. When they do, you have two options: you can reduce your repayments or keep them the same.

If you choose to keep your repayments at the higher rate, let’s say the interest rate drops from 6.5% to 5.5%, you could pay off your mortgage much faster. For example, keeping your payments the same while the rate drops would help you become mortgage-free 5 years earlier and save an additional $200,000 in interest.

This strategy is particularly useful when interest rates drop slightly because you’re effectively “locking in” the benefit of lower rates while keeping your payments higher to reduce your principal more quickly.

4. Revolving Credit and Offset Accounts

The final strategy involves using a revolving credit or offset account, which is an advanced but effective way to pay off your mortgage faster. Here’s how it works: instead of simply paying your mortgage directly, you use an offset or revolving credit account to hold your income temporarily, reducing the interest on your loan.

Let’s say your mortgage is $300,000 and you have a revolving credit account with a balance of $20,000. The money in the revolving credit account offsets the principal on your mortgage, meaning you’re only charged interest on $280,000 instead of the full amount. Over time, the savings can add up, and you can reduce your loan balance much faster.

A common approach is to put your paycheck directly into the offset account, where it temporarily reduces the amount of interest you’re charged. Some people even make extra payments into the account regularly, further reducing their loan balance and interest charges.

For example, let’s say you regularly transfer $1,000 every week into your offset account. If the money stays in the account for a significant period, you’ll pay less interest overall. Once the balance grows, you can use the money to make a lump-sum repayment toward your principal mortgage, helping you pay off your loan faster.

Be Careful of “Special” Systems

Many mortgage brokers promote “secret” strategies, usually involving revolving credit, and charge thousands of dollars for access. However, this information is often readily available and doesn’t require an expensive course to understand. A common scenario I encountered was with a client who paid $5,000 for what was supposed to be a special strategy to pay off her mortgage faster. After much anticipation, the “secret strategy” was revealed to be—guess what?—revolving credit.

So, before you decide to pay thousands for a mortgage system, consider whether the information is truly unique or something you can easily find online.

Conclusion

Paying off your mortgage early is possible, and there are several strategies you can use to achieve this goal. Increasing your payments, using your pay rises wisely, taking advantage of interest rate drops, and leveraging revolving credit or offset accounts are all effective methods to reduce your mortgage term and save thousands of dollars in interest.

By applying these strategies, you can potentially pay off your mortgage in 5–7 years, and most importantly, you don’t have to pay thousands of dollars for advice that you can find for free. If you need more personalized assistance, make sure you seek out a reputable mortgage advisor who can guide you without pushing overpriced systems.

Remember, the information is available, and with a little discipline and planning, you can make your mortgage-free dream a reality much sooner than you think!

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