# 4 Ways to Quickly Get Rid of the Mortgage

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

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 *

**PART THREE – Pay One Extra Payment Each Year**

**PART FOUR – Eliminate one non-essential monthly expense and put it towards the mortgage **

How much do you spend on non-essential monthly expenses? One example is cable/satellite. Let’s say that it’s $70/month ($840/year). If you’re really interested in getting rid of your mortgage quicker, cancel the cable and use that money towards the mortgage payment. Yes, this does require some sacrifice BUT just think about the end goal –> no mortgage payment! That should get you fired up!

Other items that could be reduced/eliminated include:

- Dining Out
- Clothing
- Spending money
- Grocery bill (use coupons!)
- Insurance premiums

Less payments toward these items mean more money for payments toward mortgage elimination!!

## 4 Ways to Quickly Get Rid of the Mortgage – Part 3

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 **

**PART THREE – Pay One Extra Payment Each Year**One of the most common ways that people get rid of their mortgage 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 extra and not part of the normal budget, it’s easier to put this money immediately towards 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

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.

## 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.

## 4 Ways to Quickly Get Rid of the Mortgage – Part 1

I’ll never forget the day that I signed my first home mortgage. I financed such a large amount of money that I couldn’t really comprehend the amount. That day I only knew two things: I wanted to purchase a house and the bank was willing to lend me the money. It wasn’t until after I made my first mortgage payment that I realized just how much this debt was going to cost me. As I begin to discover the enormity of this debt, I set out to find ways to eliminate my mortgage quickly so that more of my money would be applied to the principle balance instead of the interest.

**PART ONE – Lower The Interest Rate**One key way to quickly getting rid of the mortgage is to have an excellent mortgage interest rate. Current mortgage rates are still near an all time low. CNNMoney’s has an excellent online calculator that can be used to evaluate different refinancing alternatives to see which one is best for your situation. It can be obtained

**HERE**.

Just lowering the interest rate by 1% on a $100,000 mortgage will save nearly $1,000/year! That, my friends, will spend just like money and I would much rather apply that money toward principal reduction or funding a dream than sending it as a gift to my mortgage lender!

Another great tool is the **Early Pay-Off Calculator** located on our website under the Tools tab. This tool will show you how much more quickly you can pay off your loan if you obtain a lower interest rate.

This can seem very basic, but it is easy to get caught up in the day-t0-day bustle of life and miss one of the key ways to eliminate the mortgage more swiftly!