Many homeowners have the goal of paying off their mortgages as quickly as possible. There are simple things you can do that will shave years off of your mortgage loan. Here are tips to help you get started.
Paying down your mortgage ahead of schedule involves paying more than your normal mortgage payments each month. When you make additional payments on your mortgage, the entire amount of the extra payment is applied to the loan principle. Paying extra principle has the additional benefit of reducing your interest payments as the interest due on any given month is calculated based on the remaining balance of your loan.
The easiest way to pay extra is by making bi-weekly mortgage payments. Simply divide your monthly mortgage payment in two and pay that amount every two weeks. The end result of making bi-weekly mortgage payments is that you will make one extra payment each year entirely to equity. Bi-weekly payments are easy to swallow; splitting your mortgage payment in half could result in much needed relief for your budget. Making bi-weekly mortgage payments can shave as much as 5 years off the repayment of your mortgage! If bi-weekly payments are not for you, there is the option of making one extra payment each year.
Mortgage Refinancing
