Seven Strategies to Pay Off your Mortgage Early

Spring in Suburbia

1. Bi-weekly payment plan – Pay half of your monthly payment every two weeks. Some months will have an additional payment. This could add up to an extra full payment per year.

2. Matching principal payment plan – Add your initial principal payment to every monthly payment that follows. This shaves years of your mortgage and saves interest.

3. Make an extra full payment per quarter – In some cases, this can take up to 11 years off your mortgage.

4. Cash influx – Put unexpected cash, like an inheritance, birthday gift, tax refund, etc., toward your principal balance.

5. Refinance to a 15-year loan – This is helpful if you’re on track to pay it off early, rates are low, and you’re early in the mortgage. Consult  your mortgage professional if you’re not sure.

6. Divide your mortgage payment by 12 – Add this amount to your monthly payment and make one extra payment per year.

7. Do what you can  – Make small budget cuts and save money to contribute toward your principal.

Source: Bureau of Consumer Financial Protection, ATTOM Data Solutions


Our Mortgage Services team looks forward to helping you.

Contact us today at (800) 283-2328, ext.6026 or online by clicking here.

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