Of all the financial arrangements that any individual or couple might enter into, a mortgage is the one that is going to be the largest and most significant commitment. Anyone who wishes to do some financial planning will always have their mortgage front and centre due to the fact that the amount owed will be the greatest, the time to pay it will be longest, and the consequences of defaulting on a mortgage are the most dramatic, given that homelessness is possible.
For most people, the assumption they make is that their mortgage is going to be an obligation that lasts for up to 30 years, and that will usually mean beyond the time when their children have grown up and left home. When you think about it, it means that for around half of a homeowners adult life they are burdened with making mortgage payments.
The simple fact is it need not be that way, at least with respect to the length of time over which you pay off your mortgage. With sensible financial planning, there are options available to you, and actions you can take which can dramatically reduce your mortgage period, and in some cases, it can bring your mortgage period below 10 years. Some of you might be asking, ‘Why would I want to reduce my mortgage period?’ and it is a very valid question. The answers to it are listed below.