If you decide that paying down your mortgage is a priority for your family, there are a few ways that this can be done painlessly.
1. Bi-weekly Mortgage payments. These programs are often offered by your lender, but if they aren't you can use a third party service. My lender doesn't offer this service, but they suggested a specific third party service they like to work with and I use them with no problems. This is a GREAT option if you get paid every two weeks. You make half a mortgage payment every two weeks and you end up making one extra mortgage payment every year. Buyers can pay off their mortgage 6-8 years early by paying bi-weekly!
Here is a Bi-weekly Mortgage calculator to see what a difference it would make for your particular circumstance!
2. Make extra principal payments. It's important to remember this rule: faster is better. The faster you make a principal payment, the better it will be. Try not to wait until the end of the year to make one big lump sum payment on your principal. It's better to make principal payments monthly. The sooner you can get a lower loan balance, the lower your monthly interest expense will be!
No comments:
Post a Comment