Paying off your mortgage faster than the thirty years in which you’re required to pay it off sounds almost impossible to many consumers, but in reality, it’s not. It’s a lot easier than you think to take years off the time you’re meant to pay your mortgage, which means you’re also paying it off for a lot less than you owe. You need not win the lottery, borrow more money, or do anything complicated either. If you want to pay your mortgage off faster and for less, you can use one of these exceedingly uncomplicated and straightforward methods. You might not realize just how helpful they are even when you think they seem too good to be true.
Make Weekly Payments
Weekly payments do not need to be the same amount of money as your monthly payment. For example, if your mortgage payment is $1,500 per month, you’re likely not going to make weekly payments of $1,500 every month. If you could afford to do that, you could have your mortgage paid off a lot faster. The purpose of weekly payments is to break down your monthly payment into four equal payments and send them in weekly to your lender. Thus, a monthly mortgage payment of $1,500 equates to paying $375 each week. By making weekly payments, you allow your principal balance to decrease faster. This minimizes the amount of interest you pay every year, which makes your mortgage tens of thousands of dollars less expensive to pay off. If you pay monthly, you will make payments worth eighteen thousand dollars every year. If you pay weekly, you will pay roughly $19,500 annually, which is a full payment more than you would make if you paid monthly.
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