Tips for Paying Off Your Mortgage in Less Time

Every dollar you add to your regular mortgage payment puts a larger dent in your principal balance. You can still make a difference with even small changes. Adding just 1 extra payment each year knocks years off your mortgage.

Here are ways you can save thousands and reduce years off your mortgage without big changes to your budget:

Biweekly vs. monthly payments

• This will have a similar impact on your budget, but will result in 13 full-sized payments per year instead of 12 because there are 52 weeks per year.
• You will be making half-sized payments every 2 weeks. If your mortgage is $1400 per month, pay $700 every other week.
• If you have a $200,000, 30-year mortgage at 5% interest rate, paying biweekly will save you over $34,000 in interest and allow you to pay your mortgage off 5 years earlier!

Additional principal payments

• Send additional funds marked for as principal only vs. principal and interest as your budget allows.
• Depending on…