How to Pay a Mortgage Down Quickly Without Noticing

A mortgage is typically the largest bill you will ever have to pay. Although you usually can get a fairly low interest rate, the payment is still high. The quicker you can get out from under the hold of your mortgage payment, the quicker you can have financial freedom. Can you imagine not having to pay your mortgage payment each month? It would be great wouldn't it?! You can actually make a big difference in the amount of time you pay off your mortgage by making a few extra payments per year. In fact, making one extra payment per year equals over 5 years off your mortgage. Making 2 extra payments per year equals about 9 years off your mortgage payment. When this is divided throughout the year, the extra payments are hardly worth noticing. read this guide to quickly pay down your mortgage without noticing.

Things You'll Need

• computer
• calculator
• blank check

Instructions

1. Sign up for an online account with your mortgage lender. Almost all banks have the option to bank online. Typically you need to make up a username and password and confirm it is you that holds a mortgage with them. Then you can see all your information online in real time.

2. Set up an automatic online payment plan. You will need to have a blank check handy to fill in the bank routing number and account number. Then, you can authorize the mortgage company to automatically take your mortgage payment out of your account each month. This will save you headache and potential late fees that could cut into your profits.

3. Take your monthly mortgage payment minus taxes and insurance and multiply that times 2. Next divide that amount by 12. This will be the amount you tack on to your regular payment each month.

4. Add the amount determined from the previous step to your automatic mortgage payment. Typically there is a spot on the online form that says "additional payments." Place the designated amount under "additional payments" and specify that it will go towards paying off the principal.

5. Forget about it. Think about your mortgage payment including the extra payment. Then you won't even realize you are paying extra each month. As long as you keep money in your checking account, your mortgage will be paid, and you will be closer to financial freedom.

Tips & Warnings

• The more you can pay each month the better. If you can handle paying more than required in step 3, go ahead and pay more.

• Don't forget to change your bank information with the mortgage company if you switch banks. Late payments and overdraft fees will apply.

Resources

• Mortgage Loan Calculators