Based on our example above, that extra payment can knock four years off a 30-year mortgage and save you over $25,000 in interest.Īre biweekly mortgage payments a good idea?Ī biweekly payment plan can be a good idea-but never pay extra fees to sign up for one. That results in 26 half-payments, which equals 13 full monthly payments each year. This means you can make half of your mortgage payment every two weeks. Some mortgage lenders allow you to sign up for biweekly mortgage payments. What does paying your mortgage biweekly do? You can accomplish the same goal all by yourself. Don’t shell out your hard-earned cash for a fancy-schmancy mortgage accelerator program. Include a note on your extra payment that you want it applied to the principal balance-not to the following month’s payment.Some companies only accept extra payments at specific times or may charge prepayment penalties. Check with your mortgage company first.Our mortgage payoff calculator can show you how making an extra house payment ($1,050) every quarter will get your mortgage paid off 11 years early and save you more than $65,000 in interest- cha-ching!īut before you start making extra payments, let’s go over some ground rules: Let’s say you have a $220,000, 30-year mortgage with a 4% interest rate. To get serious about paying off your mortgage faster, here are some ideas to help: And that means if you add just one extra payment per year, you’ll knock years off the term of your mortgage-plus save thousands of dollars in interest. Okay, you probably already know that every dollar you add to your mortgage payment puts a bigger dent in your principal balance. We’ll show you how to pay off your mortgage faster so you can finally join the ranks of debt-free homeowners. How can you pay off your mortgage early?ĭon’t worry. And paying off your mortgage early lets you supercharge your retirement savings.īut the problem is you’re currently stuck dragging around that ball and chain called a mortgage-just like most homeowners. When the bank doesn’t own your house and you step onto your lawn, the grass feels different under your feet. So you’re eager to pay off your mortgage early and join the nearly 40% of American homeowners who actually own their home outright.
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