| Are you unhappy with your mortgage? There are | | | | how many months in a row you can send in to keep |
| more and more people that are finding that their | | | | pace with yourself. If you can even come up with an |
| mortgage is not what they expected. When we | | | | extra $20 each month to pay towards your mortgage |
| purchase a home or refinance our mortgage we give | | | | you will be able to pay it off faster than you could |
| ourselves a mental picture of the mortgage being | | | | imagine. |
| easier to pay down as the years go by. We think that | | | | The second way to pay off your mortgage faster is |
| with a raise in a couple of years we can make more | | | | to make a 13th payment each year. This could come |
| money and pay our mortgage down quicker. | | | | from a bonus at work, a tax return check, or from a |
| However, most people never get to a point where | | | | month when you get 3 paychecks instead of just 2. |
| they are comfortable enough to pay down their | | | | Another way to achieve a 13th payment each year is |
| mortgage faster. | | | | to make bi-weekly payments. This will give you 26 half |
| We forget to calculate the cost of living that rises year | | | | payments, which equals 13 whole payments. |
| after year and the raise we get usually ends up | | | | Paying a 13th payment each year can actually save |
| covering normal expenses instead of paying down our | | | | you 5-7 years on a 30 year mortgage, which can |
| mortgage. | | | | save you thousands of dollars in interest of the back |
| If you have a variable rate mortgage, then there is a | | | | end of your loan. It is amazing that more people are |
| good chance that your monthly payment will go up, | | | | not already taking advantage of this method, but I |
| which, again will make is harder to pay down your | | | | guess there are more important things than paying off |
| mortgage when you are making more money. | | | | your mortgage. |
| There is even something called a negative | | | | The last thing you can do is refinance for a lower rate |
| amortization loan or a Neg Am, that will have you | | | | and have your mortgage guy or gal give you the |
| paying less than the interest only payment on your | | | | payment amount that you would have to pay each |
| mortgage every month. This will actually cause your | | | | month to pay off your mortgage faster. For example, |
| principal balance to grow each month. | | | | if you refinance for a 30 year mortgage you can find |
| So how do you pay down your mortgage faster.... | | | | out what the payment would be for a 20 year and a |
| The first and easiest solution is to pay more money | | | | 15 year mortgage. Then, try to make the 15 year |
| each month towards your principal. This will save you | | | | payment each month, but if you slip up and need a little |
| interest off the back end of the loan and will pay off | | | | extra cash you can make the 20 year payment one |
| your balance quicker. | | | | or two months instead. |
| Now you just have to figure out where that extra | | | | However you go about paying down your mortgage |
| money will be coming from. You will have to figure out | | | | faster does not matter as long as you stay disciplined |
| how much extra you can send in each month and | | | | and you just go ahead and do it already. |