4 Ways to Quickly Get Rid of the Mortgage – Part 2

It’s 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!

PART ONE – Lower The Interest Rate

PART TWO – Pay 10% Extra Each Month 
Interested in eliminating 7 years or MORE from your 30-year fixed rate mortgage? Just add an extra 10% to your monthly payment! For instance, if your mortgage payment (including escrowed taxes and insurance) is $1,000, you would send in an extra $100 per month – $1,100/month.

Example – Let’s say you have a $150,000 – 5.5% fixed-rate mortgage with a monthly payment (include escrow) of $1,000 with $852 being applied to principal and interest each month (the other $148 being applied to taxes and insurance). If you send in $1,100 each month (extra 10%), there is now $952/month being applied to principal and interest. This will reduce a 30-year note to a 23 year 4 month note!

You can run the numbers for your specific mortgage by using the Early Pay-Off Calculator. This is a great tool to discover how much sooner you could be debt-free by making extra payments each month.