- 1). REVIEW YOUR FINANCES - Take the time to review your finances to see where you can cut your expenses. If you do not have extra money to put toward your mortgage, you can cut another expense and put that money to a better use, your mortgage. If you can afford to pay any amount extra per month your mortgage principle will be reduced and therefore you will save on interest and pay off your mortgage earlier. You will feel better paying an extra amount on your mortgage rather than buying another magazine subscription. Re-evaluate your finances and save yourself thousands of dollars per year. Stop wasting your money on things that are not important.
- 2). PAY ONE EXTRA PAYMENT PER YEAR - Make one extra payment per year in one lump sum or spread it evenly throughout the year by adding it to each payment. For example, if your monthly mortgage payment is $1,200, you would then pay an extra $100 each month or make one lump sum payment of $1,200 before the end of the year. When you make the extra payment your principle is reduced by that amount and therefore you pay less interest. Paying just one extra payment per year can pay off your mortgage seven years earlier than you expected. The more you put towards your mortgage, the earlier it will be paid off.
Knowing how to pay off your mortgage quickly will save you thousands of dollars. - 3). PAY TWICE PER MONTH - Ask your mortgage company if you can divide your payment in half and pay twice per month. Paying half of your mortgage two weeks early each month will help you to pay off your mortgage early by decreasing the amount that you owe in interest. Normally you need to get permission from your mortgage company before you start paying twice per month.
Some mortgage companies may even charge you a fee to begin this type of mortgage program.
If you need additional information on how to pay off your mortgage quickly look in the Resources section below. Knowing how to pay off your mortgage quickly can help you get out of debt sooner.
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