How to Pay Off Your Mortgage 7 Years Earlier
Knowing how to pay off your mortgage 7 years earlier will help you save thousands of dollars in mortgage interest. If you look at the documentation for your current mortgage loan, you will see that the total amount you pay may be twice or more the original amount. If you purchased your home for $300,000.00, you may in fact pay $600,000.00 or more with all of the interest.
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Instructions
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**Pay One Extra Payment Per Year**
Make an extra payment each year. You can either add 1/12th of your monthly payment to each monthly payment or you can just pay one extra payment. For example if your monthly mortgage payment is normally $1200 dollars, you can pay $1,320 ($1,200 plus $120) each month or you can pay an additional $1,200 at any time during the year.
Paying just one extra payment each year will reduce your principal and therefore relieve you of paying interest on that amount. Your interest will go down and you will pay off your 30 year mortgage in 23 years.
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**Pay Half Of Monthly Payment 2 Weeks Early**
Pay your monthly mortgage in two parts. Pay one half two weeks early and then pay the other half on the due date. Check with your mortgage company before you start to make sure they will credit your account with the payments correctly so that you will save on interest. Not all mortgage companies will allow this method unless you sign up for a program that they endorse. Paying off your mortgage early will save you thousands of dollars each year.
Knowing how to pay off your mortgage 7 years earlier than you should will help you save hundreds of thousands of dollars.
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**Contact Your Mortgage Company**
Contact your mortgage company to find out what programs they offer. They may be able to set you up with a program where your payments are automatically deducted from your checking account in the amount that you specify and on the dates that you specify.
Sometimes they may charge a fee to set it up, especially when you will be saving thousands of dollars on your mortgage.
You can pay your mortgage off early and begin your retirement sooner just by planning ahead. Start today to make life easier for yourself in the future. Mortgages are costly enough with all the points and fees they charge, why pay more than you have to?
Knowing how to pay off your mortgage 7 years earlier will save you thousands of dollars.
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