How to Knock 8 Years Off Your Home Loan
Here’s how you can turn your 30-year mortgage into a 22-year mortgage..
There’s a way you can shave eight years off the life of your mortgage, turning a 30-year mortgage into a 22-year mortgage.
The process is actually quite simple. Essentially, by making one extra payment each year over the life of your loan, you’ll knock off eight years of payments and additional interest from your mortgage total.
Following these tips can help you knock years of added interest off your mortgage.
Now, if you’re thinking that sending one extra payment per year isn’t as easy as I make it sound, there’s another way to do it: Just take your current monthly payment, divide it by 12, and then add that amount to each of your monthly payments. This should be more manageable than simply sending in a whole check every year. After all, you can only eat an elephant one bite at a time.
Another way you can accomplish this goal is to pay your mortgage bi-weekly. There are 52 weeks in a year, so if you pay every two weeks, that will come out to 26 payments a year. Because of the way our calendar is set up, you’ll actually get two extra half-payments this way, or one full payment, each year.
Following these tips can help you knock years of added interest off your mortgage. If you’d like more tips and tricks on how to save time, save money, and build wealth, don’t hesitate to reach out to us. We hope to hear from you soon!