How To Pay Mortgage Early

Being in the mortgage industry for 12+ years has insured I know a thing or two about paying off your mortgage early, this is a question I get all the time as a Mortgage Loan Counselor. There are a few... keep reading →

The technique I use works very well for me. I make my mortgage payment every 4 weeks instead of once a month. That works out to one extra payment each year. The savings in interest is substantial.

For example, if you were to start this habit during the first year of a 30 year mortage with an interest rate of, say, 5.0%, that one extra payment would reduce your gross interest 1-1/2 times the amount of your payment. Each year, as your principle is reduced your interest saving is a tad less. Just to make the math easier, let's assume the mortgage payment was a constant $2000 for all 30 years which, of course, it isn't. At the end of 30 years, your total interest will have been reduced by about 20 times the amount of the payment. You stand to save about $40,000. Cool savings! All calculations are estimates and your actual results may vary.

Q

I always pay extra my mortgage every month and some time pay a chunk for full year, i have to be cruel and mean with my personal spending habit- so i can pay off my mortage bit earlier - cannot wait to be free from mortgage.

you pay less interest in total you supposed to be .

A mortgage is usually the biggest debt that most indiviuals or families have.  A mortgage is basically a loan that is secured by real estate or real property, meaning that if you do not re-pay the loan, the... keep reading →

My dad always said to pay as much as you could every month and if you get any tips or bonues that get sent as well,but all I could ever manage was to send as much more than the mortgage asked for...never much...a hundred, sometimes only rounded to the next hundred...but that would at least put a bit more escrow in for the year which is how the banks increase your monthly mortgage in the end...especailly in the south/tornadoes,hurricanes etc there is always a "reason" to increase the taxes and insurance so the sheet you get at closing?the one thats so pretty saying your mortgage will decrease over time?that is not the whole story mortgage payment might go down but everything else goes up.One the other had,as my dad always said whenever I got up a full head of steam about this subject...oh every YEAR! hewould remind me rent always goes up too and where would I like to live in my 80's? a dump apt or my own home? I am ashamed to say sometimes I'd mouth at him ad say stupid things like I could move from dump to dump at least but with a house I'd be stuck..as if in my 80's I'd be physically able to pack and move and unpack etc/its a no win situation I'm afraid especially te older I become ( but arent I well preserved for my age?lovey picture eh? ha) but the bank have us with that problem now as well, wht ith the reverse mortgage eh? and so I am still of te opinion that if at all possible the huse we are payng for mow will please please sell so while hubby andI are still in our 50's we can at least get where we would like to stay for the next few decades,without yardwork,without worrying about leaks,electrical,foundation,appliances reaking nd no way to fix it.as I aid, its a no win situation/espcially if you aren't wealthy

Almost 10 years ago I was given a 3.5" diskette (remember those?) that had information that really made me think differently about how I was paying my mortgage. I will never be able to repay the person who... keep reading →

When you understand how interest works on a mortgage, you can begin to get your hands around the best way to get it paid off. As Quilligrapher suggested below, making payments every four weeks rather than monthly will make a substantial difference because the extra payment goes against the principal, not interest. Since the interest portion of your mortgage payment doesn't change for a given month, anything over and above that amount shortens the mortgage term and increases the equity in your house. Once you understand the time value of money, you can see how a little effort early in the loan yields big benefits at the end.

The best way i have found to pay off your mortgage is: examples below. 1. say that your mortgage payment is 1200.00, so each month that you send in a payment send in at least 100.00 extra, at the end of the... keep reading →

You can make one extra payment each month as suggested below and also pay weekly/fortnightly instead of monthly. You can also use a line of credit or revolving credit. To do this you put all your income in this account and defer paying expenses by credit card, all of the extra money in the account counts towards the mortgage until it is withdrawn. Note only get a line of credit if you are good at managing money otherwise you could get into trouble. Click on my account for details.

In an ever-changing economy, the urge to create security seems to be on the forefront, as well as the need to minimize debts. If you have considered owning your home free and clear, first do the numbers. ... keep reading →

Paying off your mortgage early is the best investment out there today.

If you just stay focused on using a system, i.e. pay extra principal each month, 13 payments year or what ever you choose, keep it up and you will get there.

It's a very good feeling to be paid off on a mortgage and debt free. I know, it's been my experience.

Stay liquid, find safe investments after you pay off the house and save for retirement.

Best Wishes,

Jeff

To take years off of your mortgage, you have only to pay one extra monthly payment per year. You can pay it all at once, or break it up into twelve payments.