3 Easy Tips That Help You Pay Off Your Mortgage Early

Once you buy a house, you’re locked into a mortgage for 30 years, right? Wrong. Most banks have done away with prepayment penalties and made it easy for you to save money.

1.

Add Two Extra Payments Per Year

Typically, most lenders require you to pay your mortgage once per month on the first day of the month. This adds up to 12 full payments per year.

However, a growing number of banks are offering biweekly payment options. Rather than paying once a month, you pay every two weeks. This works out to two extra payments per year.

Round Up Your Payments

Rounding up your mortgage payment is a fairly easy way to save money on your mortgage and pay it off early. Round up as much as you can.

2.

Even if it’s just up to the next $10 mark (paying $760 instead of $752.10) or the next $100 mark ($800 instead of $712), you can shave months off of your mortgage and be debt-free faster.

Refinance When Interest Rates Are Low

Refinancing may not be a good choice if you simply plan on paying the regular amount for another 30 years.

3.

But if you have the dedication needed to stick to your original payment plan, you can save lots of money with a lower interest rate.

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