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Tips That Will Help You Pay Your Mortgage Faster

How long does it take to pay a loan?

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This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process. Opinions expressed by Entrepreneur contributors are their own.
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  • Tips to pay your mortgage credit faster.
  • Generally, people prepay their financing before the term in which they hired it.
  • Discipline is another factor that influences you to be the owner of the house for which you have worked so hard.

When buying a house, the first thing you should do is collect for the down payment. But what happens next? We have some tips to pay your mortgage credit faster.

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The advantages

One of the main advantages of paying your mortgage credit faster is that, in addition to having a 100 percent home, you achieve better personal finances, indicates Leonardo González, Real Estate analyst at Propiedades.com .

On the other hand, if in the medium or long term you decide to buy a second property, you can access a higher value one. As well as a new loan with better conditions.

How long does a loan take to pay?

According to Fernando Soto-Hay, general director of Tu Hipoteca Fácil , the useful life of mortgage loans in Mexico is approximately eight years.

“Generally, people prepay their financing before the term in which they hired it. That is to say, prior to 15 or 20 years ”, he adds.

How do they do it?

According to specialists such as the manager of Tu Hipoteca Fácil and Juan Kasuga, managing partner of Creditaria, to pay your mortgage credit faster, you can use your additional income.

It is important that you see as additional income those that do not function as your family mattress or that of your business, if you have one. Practically, it is the money that you do not have contemplated.

Kasuga considers benefits in this area. “Generally, people who work in a company receive a bonus. Ideally, you should allocate a significant percentage of that benefit to the advance payment of the mortgage, ”he says.

For this, you must go to your bank and tell the executive that your payment is applied to capital and that the effect is to reduce the term.

To pay your mortgage credit faster you can use your additional income / Image: Micheile Henderson via Unsplash

Other options

Discipline is another factor that influences you to be the owner of the house for which you have worked so hard.

Kasuga says that the first thing you should do is ask your bank if it is possible to advance the amount you decide on a monthly basis. For example, find out if you can allocate 20 percent more to the monthly contribution.

Another option is to approach specialized companies such as Tu Hipoteca Fácil. In them you receive advice and they help you improve the conditions of your loan, says Fernando Soto-Hay. Ideally, you should do this as long as you are up to date on your payments.

The specialist emphasizes that you should not fall into the temptation to extend the period again. "You have to hire the term equal to or less than the one you had," he says.

Let time play in your favor

The three experts add that there is a greater impact in reducing time or cost if you make the first advance payments to the principal from the beginning of the life of the loan.

"Ideally, the largest amount of contributions you make in the first five years of the loan," they point out.

It is time to get to work and implement these tips in your financial strategy to pay off your mortgage credit faster. With them you will pay off your debt in a fast and practical way.