Curtailing your mortgage payments is a financial option that relieves you of mortgage debt ahead of your payment schedule. If you can pay your mortgage off early, you won’t have to pay back as much money because you’ll be saving on interest. If you’re a Michigan resident, here is more information on how curtailing can eliminate your mortgage debt.
Mortgage curtailment definition
To curtail your mortgage debt means to lessen or shorten your payments. This means the life of your loan will be shorter, and you’ll reduce the overall amount you owe. You can accomplish this by paying off the mortgage before the maturity date and making additional payments before the end date of your loan.
Reasons to curtail your mortgage
Some people argue that the money you spend to curtail your mortgage could be better spent in other ways. For instance, you can use the money to add to your retirement fund or make an investment. However, taking care of your mortgage debt early can have its benefits.
One reason you may want to pay off your mortgage early is that you will inevitably lose income when you retire. If you curtail your mortgage, you won’t have to worry as much about keeping your mortgage current when you are no longer working full-time. Curtailing your mortgage can also give you the peace of mind of knowing that you’ve taken care of a major debt, which can significantly lower your stress levels.
To curtail your mortgage, you’ll need to make payments on top of your regular mortgage payments. You can do this on your schedule; you don’t have to meet a minimum requirement in order to shorten your loan.