Should You Pay Off Your Mortgage Early?
Pay Off Your Mortgage Early
In fact, we strongly suggest paying off your mortgage early. Why? Because it saves you a boatload of money!!! Plus, you will be out from under that hefty mortgage payment years early. Let’s take a look at some things that might be keeping you from paying off your mortgage early.
1. Shorten Your Loan Term
Most people don’t know this, but you can actually set your loan term for any number of years you want. In reality, 30 years is most common because the loan term needs to be stretched out that long to be able to afford the payments.
2. Make Extra Principal Only Payments Whenever You Can
Calling all new homeowners who are maxed out on their monthly payment, this one is for you. If you’re just starting out and don’t have much to spare on your monthly payment, not to worry. Just make an extra payment whenever you can.
3. Make Bi-weekly Payments
One option is to make bi-weekly payments, meaning, you make a payment every two weeks instead of once a month. In this scenario, you would make half of your monthly mortgage payment every two weeks, which will cut down on your interest in two ways.
4. Add an Extra Monthly Principal Only Payment
While any extra you can pay toward your mortgage will be beneficial, our favorite method is to add a monthly principal only payment. A perfect use for that income increase it to make extra payments on a monthly basis.
5. Moral of the Story
It is always a good idea to pay off your mortgage early because of the huge amount of interest you can save. You could literally save thousands of dollars in interest, and shave years off your mortgage.
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Money Saved Is Money Earned!