Welcome to the latest series at JosephSangl.com – Ways To Eliminate The Mortgage More Quickly. It is my hope that this series can help you eliminate what is usually the single largest expense in the household budget and free that money up to much greater things than make a bank rich!
Part 4 Pay one extra payment each year
One of the most common ways that people reduce their mortgage payback period is by sending in one extra payment each year. This will eliminate 5 to 7 years from a 30-year fixed rate mortgage. You can send one extra payment each year using a variety of methods.
- Send in one extra payment when you receive a tax refund or profitability bonus
- Since this money is not part of the normal budget, it is can be easier to send this money immediately toward the mortgage.
- Set up 1/2-payments to be made every two weeks
- Since there are 26 two-week periods in a year, this means that 13 full payments will be made each year. Presto! An extra payment!
- Send in 1/12 (8.3%) extra on each monthly payment.
- 1/12th payment/month X 12 months = 1 full payment per year
Use the Early Pay-Off Calculator located HERE to run some numbers for your mortgage and become debt-free sooner!
Read the entire series HERE