Did you know that you can save a great deal of money by paying down your home mortgage ahead of schedule? Let’s take a look at some simple strategies you can use to make that happen.
- Make additional principal payments. Regularly adding an extra $50, $100 or more to your monthly payment can take years off your mortgage.
- Change to biweekly payments. If your mortgage permits, make payments every two weeks instead of monthly. Making 26 payments per year is like making 13 monthly payments rather than the normal 12.
- Make lump payments when you can. If you receive a bonus, tax refund or inheritance, put the extra money toward paying down your mortgage.
- Refinance to a shorter-term. Not only will you pay off your mortgage sooner, you’ll save on interest expenses.
Follow one or more of these simply strategies and you could save yourself thousands of dollars! Of course, be sure to check with your lender first to make sure your loan agreement allows pre-payments without penalties.
