In the competitive Seattle real estate market, securing a house loan is often just the first step. But what about paying it off? Getting rid of that mortgage faster can free you up to make other financial moves. Here are some strategies to help you do just that.

Make Bi-weekly Payments

One of the simplest ways to reduce the lifespan of your mortgage is by making bi-weekly payments. By splitting your monthly mortgage payment in half and paying it every two weeks, you end up making one extra payment per year. This shaves off time and interest from your loan.

Refinance to a Shorter-Term Loan

If you initially opted for a 30-year mortgage but find you can afford higher payments, consider refinancing to a 15 or 20-year loan. This will not only enable you to own your Seattle home outright more quickly, but also save you a considerable amount in interest.

Use Windfalls Wisely

Seattle is a hub for tech companies and startups, meaning bonuses and windfalls are not uncommon. Rather than splurging, consider applying these to your mortgage principal. This directly reduces the amount of interest you'll pay over the life of the loan.

Make Additional Principal Payments

Even small additional payments towards your principal can make a big difference over time. An extra $100 or $200 a month can cut years off your mortgage and save you thousands in interest.

Recast Your Mortgage

Mortgage recasting is an often-overlooked option. If you come into a lump sum of money, you can use it to lower your remaining balance and then have the lender “recast” your loan. Your loan term remains the same, but your monthly payments will be lower. This might be particularly helpful for those selling a previous property in Seattle's hot market and rolling the profits into a new home.

Consult Your Real Estate Team

Finally, never underestimate the value of professional advice. As part of Emerald Group, we have the insights and expertise to guide you through strategies tailored to your specific situation.

By implementing these tactics, you can pay off your mortgage faster and enjoy the benefits of full homeownership sooner rather than later.