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Step 1
*Figure out how much you will pay extra each month.
Go through your monthly budget and find out how much extra you can afford to pay each month. Then adjust your monthly payment accordingly. -
Step 2
*Pay extra with your payment monthly through the mail.
When you mail in your payment, just write out your check to include the extra amount. Make sure you check your monthly statement to ensure the extra amount you are paying is coming off the principal balance. I recommend including a note with mailed payments instructing that the extra amount be put toward the principal balance. -
Step 3
*Pay extra monthly with automatic withdrawals.
If your payment automatically comes out of your checking account every month you just need to contact your lender and change the payment amount. Make sure when you contact your lender that you explain your intentions with the higher payments. -
Step 4
*Bi-weekly payment plan.
Most lenders either offer or will refer you to a company that offers a bi-weekly payment program. These programs electronically take a portion of your mortgage payment out every pay period. The total of these payments usually equal one extra payment a year. Most of these programs do include a sign up or processing fee. They also charge you a fee with each withdrawal from your account. -
Step 5
*The easiest way to pay-off your mortgage early.
If you get taxes back at the end of the year, make one extra payment when you get your taxes back. One extra payment a year will pay off a thirty year conventional mortgage in about twenty three years! That will save you seven years of payments.











Comments
fortunate said
on 10/13/2009 Everyone needs to do that if it is feasible. Banks make enough on fees already. 5*!
funmom970 said
on 10/12/2009 Wonderful article on paying off your mortgage early! We all need to know this info!