There’s an easy way to speed up paying off your mortgage loan. Many of you are already familiar with it.
Simply, send an extra payment whenever you can. Or, pay your mortgage loan every four weeks, not just once per month. At the end of the year, you’ll have made 13 payments, instead of just twelve.
While it may not seem like much of a difference, the magic is in how much less you’ll pay in interest, over the life of your loan.
Of course, most (younger) people won’t be staying in their current homes (condos) for long enough to necessarily enjoy paying off their loans, but if you are buying a home for you and your kids, it can be worth it.
Regardless, making the extra payment is a good way to increase equity in your home. If and when you decide to sell, you’ll get it back.
** When you make the extra payment, make sure you specify that it should go directly to principal; the bank servicing department might just put it toward next month’s payment, instead.
More: Speed up the mortgage payments and save, but beware of gimmicky strategies – By Humberto Cruz, The Boston Globe