How to Payoff Your 30 Year Mortgage In 15 Years

How to payoff your home mortgage early. I will give you step by step instructions on how to payoff your 30 year home loan in 15 years or even less and save thousands!!

Difficulty: Easy

Instructions

Things You'll Need:

• amortization schedule

1. 
    
   It's easy to save tons of money when you payoff your house early

   If you have a fixed interest rate mortgage on your home with no prepayment penalty, you can pay off your 30 year mortgage debt in 15 years and save lots of money on interest.
   This strategy applies to any fixed rate mortgage whether it be 40 years or 10 years.

2. 
    

   Here's how....
   1. Ask your mortgage co. for an amortization schedule. An amortization schedule is a table detailing each chronological payment on an amortized loan, they are generated by an amortization calculator.They usually cost about 20 dollars.

3. 
    

   2. When you receive it, look at your current payment. It will have a breakdown of your payment showing amount of principal, interest, taxes, insurance and your principal balance after that payment.
   
   You will be amazed at how small the amount is of principal. There is a reason for this...most of the interest you pay is in the first years of your mortgage

4. 3. On the amortization schedule, look at your current payment due.
   4. Pay your total monthly payment plus next months principal payment. If you wish, you can pay more than 1 extra principal payment.

5. 5. Write out 2 checks...1 for your current payment and the other for additional principal.
   6. On your check where it is labeled memo, write additional principal.

6. 7. There will also be a place on your payment coupon to write in additional principal and your total payment.
   8. After you write the amount, check it off your amortization schedule so you can keep up with your payments.

7. When you do this, you eliminate that months interest, thereby decreasing your mortgage debt. You can now pay off your mortgage debt in half of the time or less e. g. 360 payments into 180 saving boatloads of interest money.
   You will be amazed at how small the extra principal amount is and how much interest you save!!

8. I have paid off 2 homes early and working on my 3rd home. If all goes well, I will pay it off in 2 years!!
   
   It is amazing the incentive you will feel when you see your amortization schedule and how small the amount of principal is for each payment.

Tips & Warnings

• I usually pay several extra principle payments at one time. Be sure to check them off when you pay them. After you make a payment, look over to the balance remaining and it will give you a great feeling of accomplishment!!.

[heatherbaker]

on 5/14/2009 Wow thanks for this article! We are about to buy our second home! 5*!

[sarahpb]

on 5/7/2009 It's amazing how much of the mortgage is interest! We've been paying extra principal in little chuncks, but I think this tactic will be more effective.

[lmccray4]

on 5/3/2009 Excellent advice, and well written article on paying your morgage early. 5* and recommendation

[Delaplane]

on 4/29/2009 Thanks for the advice on how to pay off a 30 year mortgage in 15 years

[agape7755]

on 4/28/2009 This is a great article! I just purchased my first home and have a 40 year mortgage as of right now. As soon as we get more income in, I think my husband and I will begin to do this! 5*/recommend