Ways To Pay-Off Your Mortgage Early
– from realtytimes.com 5-16-17
Make an extra payment each year
Making 13 payments instead of 12 can save you thousands and shorten your loan. On a 30 year, $200,000 mortgage at 4.5%, you would save $27,000 in interest and pay your loan off 4 years and 3 months early.
Make an extra payment each quarter
Make an extra payment each quarter and you will save $65,000 in interest and pay your loan off 11 years early on the same $200,000 loan at 4.5% interest.
Get rid of PMI (private mortgage insurance)
If your home was purchased with less than 20% down payment then you are probably paying PMI. Check to see if your mortgage balance has changed enough to eliminate this charge and lower your payment.
Apply any windfalls
Get a raise or a bonus? Maybe a surprise cash gift? Instead of taking that vacation or putting it into your savings, apply it to your mortgage balance. A $10,000 lump sum payment on that 30 year, $200,000 mortgage at 4.5% pays it off 2 years and 4 months early and saves more than $19,000 in interest.
All information deemed reliable but not guaranteed. For tax, investment or ownership advice we suggest you contact an attorney or certified public accountant.