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Step 1
PAY ONE EXTRA MORTGAGE PAYMENT - Make one extra mortgage payment at the end of each year. Making just one extra mortgage payment per year will save you thousands of dollars on your mortgage and help you to pay it off seven years early if you use this method from the beginning of your mortgage.
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Step 2
TWICE PER MONTH - Contact your mortgage company and ask if you can pay have of your payment twice per month. Set up a schedule with them. This method is only effective if your mortgage company applies the amount to your principal and allows you to reduce your interest.
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Step 3
PAY EXTRA ON EACH PAYMENT - Take the monthly amount that you pay for your mortgage payment and divide it by twelve. Add this extra amount to your mortgage each month. This extra amount will pay down your mortgage earlier, saving you thousands of dollars in interest.
Comments
hradcliffe said
on 9/18/2009 This is an easy and effecient way to pay off your loan quicker. 5*
billips said
on 6/11/2009 Good suggestions - it really does help a lot with cutting the interest if you pay more than just monthly - 58 - B.
geekmommy4 said
on 6/10/2009 This is one piece of advice that my parents gave me when I was young and I have always followed! It's a great idea for anyone!
Derren said
on 6/1/2009 Great tips on mortgage payment.
stlscientist said
on 5/31/2009 Super advice. I've heard of this and I think the basic concept works on autos as well.