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How Can I Repay My Mortgage Faster?

By Kevin Landis

Now you can learn how a few simple tricks can enable you to pay off your mortgage faster and easier than you ever thought was possible.

Your mortgage is your biggest debt. Most of are straddled with a thirty year commitment to repay the loan. In today’s market, there are even people who have forty year mortgages that they will be paying for the better part of their lives. But how, short of winning the lottery, can you pay your mortgage off faster without going broke in the mean time? Simple, there are a few little known tricks that can help you conqueror this debt.

Make payments on a bi weekly schedule, automatically from your bank account.

When you pay on a mortgage every two weeks you will cut the length of your mortgage by 8 years! First of all, this means that you actually make 13 payments in a year instead of 12. What this does is drop your overall interest considerably over the length of the mortgage, shaving approximately 8 years from the total amount of repayment time. Because of the way interest is calculated on mortgages, the payments coming in every two weeks will drop your balance quickly. Your lender will have to continually charge interest on the new, lower, balance each time they calculate their interest.

Add $100 per month to your mortgage payment and request that it be placed toward the principal and loose another five years on your mortgage length.

You must contact your lender in writing and state that you want any additional money paid each month on your mortgage directly applied to the principal amount of the loan. This is critical. If you do not request the amount to be placed toward the principal, any extra will be rolled over to pay for the next months interest. By applying as little as $100 monthly to your principal, you will drop almost five years off your loan. Combine this with the above mentioned method and you are looking at a 13 year reduction in payments.

Related posts:

1. How Can I Pay Off My Home Mortgage Faster?
2. If I Pay More Than My Monthly Payment On My Mortgage, How Is It Applied?
3. How Do I Calculate Principal Reduction On My Mortgage Loan?
4. How does a Mortgage Amortize?
5. Are There Mortgage Interest Rates For 1st Time Home Buyers?