How to Pay Down Your Mortgage Faster
Whether you’re looking ahead to retirement or just looking to reduce debt, paying down your mortgage faster makes for a rosier financial future. Here are some relatively painless ways to do so.
First, instead of making a monthly mortgage payment, try switching to accelerated biweekly payments. Not only will this shave years off the term of the mortgage, it will save you thousands of dollars in interest.
Next, try rounding up each payment to pay at least a little more each time. For example, if your payment is $865, round up to $900 instead.
Also commit to putting any unexpected money – from a bonus at work to a winning lottery ticket—toward your mortgage. Doing so will allow you to chip away at your mortgage without feeling the effects in your wallet.
Finally, consider making one extra mortgage payment each year. Most lenders will allow you to do so and will apply it directly to your loan principal.