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Prospect Financial Group, Inc.

How To Pay Off Your Mortgage Faster

Friday, August 1, 2014 - Article by: Prospect Financial Group, Inc. - Message

After the housing crash, most people have lost faith in the housing market and are looking to quickly pay off mortgages. The security of owning your home 100% is a prospect every homeowner looks forward to. If you wish to get to this milestone faster, there are a couple of ways to go about it.

The easiest way to pay off your mortgage faster is to add a little payment to the principal amount. Mortgage calculators can be a great asset when figuring out how much extra payment you should add to your payment to speed up the process. The best way to pay off a mortgage is to simply round up. Your $1,236 payment could be rounded up to $1,250 and save you around six payments for the life of the loan.

Refinancing can be a great way of shaving off your loan's life to get things done faster. You can refinance into a 10, 15, or 20 year mortgage from a traditional 30-year mortgage can save you from years and years of mortgage payments. Even though the monthly payment may be higher, you'll pay almost half the amount if you decide to cut your loan life in half.

If you start to make biweekly payments, you'll be adding a full other payment to the twelve you would be paying anyway. Pay every other week and you'll have made 13 full payments because there are 52 weeks in a year. That means you'll be making 26 payments if you follow a biweekly schedule. Over the life of the loan you'll have shaved off a couple of years by sticking to this schedule.

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