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How to Pay Off Your Mortgage Faster


There's no freedom like the freedom of owning your own home. Use the following strategies to pay off your mortgage faster:

Make Bi-Weekly Payments

Divide your monthly mortgage payment into two bi-weekly payments, and you'll end up making the equivalent of one extra monthly payment each year. A move that will save you thousands.

Eliminate Your PMI

Did you put less than 20% down when you bought your house? If so, you're probably paying private mortgage insurance. Work to get rid of it as soon as you can. Then, apply the monthly savings towards the principal of your loan.

Refinance to a Shorter Loan

Have a 30-year loan? Consider refinancing to a 15-year loan, if you can get an interest rate that's 1.5% lower than your current rate. It's a move that could translate into six-figure savings!

Make the Most of Windfalls

Apply all bonuses, raises, gift money and windfalls towards the principal of your loan, and you'll save yourself loads of interest.

Pay Ahead

When you make this month's payment, make a second payment in the amount of next month's principal payment. Over time this simple move will knock years off of the life of your loan.

Note: Be sure to indicate that your extra payment is to be applied towards the principal only.

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