Hpp Cares Blog Paying Off Your Mortgage Earlier Than Scheduled

Paying Off Your Mortgage Earlier Than Scheduled - Part 2

As discussed earlier, when paying your mortgage ahead of the scheduled monthly date, and paying a little more than prescribed every month, does result in reduced interest on the principal debt, and can shorten the mortgage period. This time we focus on the advantages of depositing a big cash influx into your mortgage.

Pay Any Lump Sums of Money Towards Your Mortgage

Below are possible sources of big cash influx: • A bonus payout from work. Some companies pay out up to two bonus per annum. • A 13th cheque, birthday or Christmas payout which is paid once a year • Commission from sales • A tax return payout or even • an inheritance from a family member

Cash influx can be deposited straight into your mortgage. When making the deposit you will need to do this with an instruction that it is to be used to reduce the capital debt portion of the home loan. Even if you only make the deposits two or three times a year, the results will be visible.

What options do have once your mortgage is paid off?

Once your mortgage is paid off in a specified or chosen amount of time, your account will be closed, and that lien will be removed from your property.

You can choose a home loan such as a Home Equity Line of Credit (HELOC) to cash out money from your property’s equity. With this extra money in your account, it will allow you to build an ADU or extend / renovate your home. Basically, when a mortgage is paid off early, it creates a nest egg that you can use for unexpected crises.

*For more information on the subject visit the following links: *

https://www.hppcares.org/buying.php

https://www.hppcares.org/mortgage.php

Compiled by Mpume Nyandu, HPP Cares’ Director: Stakeholder Relations

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As a social enterprise, HPP CARES CDE has achieved significant and wide-ranging accomplishments in recent years. Working under the National Coalition for Equities' (NCFE) umbrella, our focus has been on advocating for a strong community voice among federal and state regulators and major private sector corporations. We've dedicated ourselves to addressing public policy issues, particularly those related to wealth and income inequality impacting affordable homeownership and small business growth.

Through collaborative efforts with NCFE, HPP CARES CDE has expanded outreach initiatives, leading to increased corporate social responsibility and consumer protection awareness. Our endeavors have enabled us to engage with a broader audience, forge partnerships with numerous companies, and engage with regulators, all with the goal of supporting deserving individuals in achieving sustainable homeownership, fostering successful small businesses, protecting consumers, and empowering California communities.

At HPP CARES CDE, we are committed to championing opportunities for people of color to become integral partners in our mission to reduce income and wealth inequality, thereby contributing to the creation of stronger futures for all minority groups.