3 Clever Ways to Pay Off Your Mortgage Early:

Paying off your mortgage may sound like a dream far off in the distant future. But what if the day you make your last mortgage payment could come sooner than ever imagined? Here are three clever ways you can shave years off your mortgage! 

Bi-monthly payments: 

Making bi-monthly payments is an easy way to save thousands in interest on your mortgage. 

When you choose to make bi-monthly payments, instead of making one payment at the beginning of each month, you’ll make a half payment every two weeks. 

By making a half payment every two weeks, you’ll make 26 half payments or 13 full payments each year, instead of 12 payments each year.

This may not sound significant; however, over the course of a 30-year mortgage, one extra payment a year will result in shaving years off your mortgage and saving thousands in interest. 

Check out this calculator if you’re curious to know how much you could potentially save! 

Extra principal payments: 

Paying extra toward the principal balance of your mortgage can have a massive impact on the amount of interest you pay and how long it takes to pay off your mortgage. 

For example, if you have a mortgage loan for $350,000 with a 5% interest rate. Paying an additional $500 per month toward the principal would result in your mortgage being paid nearly ten years early. And you would save over $130,000 in interest over the course of the loan. 

Check out this calculator, input your information, and see how much you could potentially save! 

Refinance your mortgage:

Refinancing your mortgage can be a great way to pay off your mortgage early, depending on the current rates and loan offerings. 

There are a few scenarios in which refinancing may be beneficial, and some scenarios that refinancing could hurt your goals to pay off your mortgage early. 

If you are considering refinancing your mortgage, here are a few questions to ask yourself first: 

-Will my interest rate be lower than the rate I currently have? If yes, refinancing may be a good option. 

-Will the fees I currently pay be reduced? If fees such as private mortgage insurance or mortgage insurance premiums are reduced, then refinancing may be a good option. 

-Will my monthly payment be less than what I am currently paying? If your payment, including taxes, insurance, interest, and principal, is less, it may be worth refinancing. 

Now you just have to choose which option works best for you!

If you want to pay extra towards your mortgage but don’t have the funds, check out this article for ways to make extra money.