Tricks to Pay Your Mortgage Faster

1) If you are getting married then consider this. Don't pay for a honeymoon. Set up a honeymoon fund instead of a gift registry. Apply what you would have personally spent on a honeymoon on your Bahamas real estate mortgage. Some of the most beautiful places to honeymoon are right here in the Bahamas.

2) The larger the down payment, the less you'll pay in interest. Avoid 5% down offers if you are able. They'll end up costing you much more at the end of the day.

3) Make more frequent mortgage payments. Pay on a fortnightly or weekly basis rather than monthly basis. Split your monthly payment in half and pay every two weeks or in four and pay weekly. The reason? You'll make 13 monthly payments a year instead of 12 and save thousands of dollars of interest on your loan.

4) Reduce the principal early if you are able during the first few years of your Bahamas real estate mortgage. Anything you put on your mortgage above your repayment will reduce the amount owed. Down the road, it means you'll be paying interest on a smaller amount. Generally, the banks will accept certain minimum lump sum amounts. Work towards saving these amounts if you can.

5) Extra lump sums or additional repayments can help you chop many years off the term of your loan.
6) Shop the banks and make sure you get ALL the facts on the terms of your loan and closing costs before making a decision on which bank to use.

7) Obtaining a private loan could be a win win situation. The buyer should pay less in interest under more favourable terms, but the lender will get a higher interest rate than the banks are paying. Use a reputable lawyer.

* Your Leading Bahamas Real Estate source.