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How Can I Pay Off My Home Mortgage Faster?

By Stacy Williams

How can I pay off my home mortgage faster?  Read hear for tips on how to pay off your mortgage faster than you thought possible!

Homeownership has always been regarded as the American dream.  Unfortunately, due to high housing prices, purchasing a home with cash is often impossible for many people.  To purchase a home, many people are forced to take out a mortgage.  Most mortgages take people 30 years to pay off.  For those looking to pay off their mortgage faster, there are several steps which can be taken.

Make Higher Payments

The first way to pay off a home mortgage faster is to make higher payments.  For an individual with a $200,000 mortgage at a 6% interest rate, a monthly payment on a 30 year mortgage would be $1,199.  If the same person increased their payment by only 90 dollars per month, their mortgage would be paid off in 5 years faster.  If they raised their payment by $230 per month, it would be paid off 10 years faster.

Make More Payments

The next way to pay off a home mortgage faster is to make more payments.  A common strategy for many people is to make half a mortgage payment every two weeks.  Under this strategy, 13 monthly payments will be made per year as opposed to 12.  Using this strategy, the average homeowner could pay off their home 8 years faster.

Increase Credit Score

The next way to pay off a home mortgage faster is to increase your credit score.  A credit score is a large determinant in the interest rate offered to a borrower.  The difference between a bad and good credit score could be as high as 1%.  Assuming they made the same $1,199 payment, if the borrower mentioned above had their interest rate dropped to 5%, their mortgage would be paid off 6 years sooner.

Related posts:

1. How Can I Repay My Mortgage Faster?
2. How Can I Reduce My Mortgage Debt?
3. What Are The Standard Terms For Home Mortgage Loans?
4. What Is The Early Mortgage Payoff Plan?
5. What Credit Score Do I Need To Qualify For A Conventional Home Mortgage Loan?

One Response to “How Can I Pay Off My Home Mortgage Faster?”

1. Dee | Payoff Your Mortgage Early says:

   March 25, 2010 at 10:26 am

   Great article, but did you know there’s a free informational ebook and video that explains how to payoff your mortgage in 90 days instead of years? It’s great information and a helpful tool.