Pay Off Your Mortgage Quicker

Dated: 10/28/2016

Views: 631

If you have a 30-year fixed rate mortgage, check out these tips that can help you pay off your loan in less than 30 years:

Round your payment up each month

Rounding up your payment to the next highest $100 amount each month is an easy way to reduce the amount of time you’ll owe on your loan. For example, if your payment is $1260, pay $1300.

Set up bi-weekly payments and pay half of your payment every 2 weeks

Arranging bi-weekly payments with your lender will result in you paying 13 payments per year, as opposed to just 12 when you pay monthly.

Increase your payment when you receive a salary increase or bonus

Applying any extra income earned to your mortgage without cutting into your current monthly budget is another simple way to help to pay down your mortgage faster.

Use your tax refund to pay extra on your mortgage

Just like using a raise or bonus to pay extra on your mortgage, designate some of your annual tax refund to your mortgage each year.

Refinance into a 15 year loan

Choosing to refinance from a 30 year to a 15 year mortgage will drastically reduce the time it will take to pay off your loan, as well as decrease the amount of interest you pay.

Refinance to a lower interest rate

Lowering your interest rate will reduce your monthly payment and free up extra money that can be applied to your mortgage to pay it down early.

*Before you decide to pay off your mortgage early, make sure you check with your lender about possible prepayment penalties.

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Jim Mazzerina

ABR, CRS, E-Pro, RSPS, SFR, SRES Jim is a “Jersey boy” originally from north Jersey in the Totowa, Little Falls area. He made the move to Stafford about 30 years ago, after finding the perfect....

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