There are many people refinancing their mortgage to a 15 yr term to pay it off earlier, but what are other ways to pay down your mortgage faster? Some pay extra monthly, some make bi-weekly payments.
This picture gives you an idea of the best way to pay down your mortgage.
For many, it’s easy to add an extra $100 to your mortgage payment monthly – if you can do that every month you can pay off your 30 year loan in 21 years and save thousands. If you set up bi-weekly payments you will take about 5-6 years off your mortgage.
Ideally you will invest that money you save and then you will have a nice savings account along with your home paid off. This shows the possibility of what you might save- assuming you get a fantastic return of 10%!
The bottom line is paying extra every month will help you pay down your mortgage and gain equity in your home. That is a terrific way to save money over time.
Leslie Vanderwerf, NMLS ID#335509, American Mortgage & Equity Consultants, Inc., An Equal Housing Lender, NMLS#150953 – Email – Website
