“How I can be mortgage free sooner?” All homeowners ask this all the time! Of course nobody wants to pay more for their own home. Here are some tips that can help you become mortgage free and even raise the level of equity in your home faster!
For example, let’s assume that I have a mortgage of $200,000 at a 3.99% interest rate with 25 years amortization was well as a monthly payment of $1050 in combined principle and interest.
- Switching from monthly payments to bi-weekly payments cuts 3 years off of your mortgage.
- Paying $100 more bi-weekly will shorten 5 years on your mortgage.
- A lump sum of $1000 every year toward your mortgage cuts an additional 1 year from the life of your mortgage.
Now if you can do all these three things, you can be paying off your mortgage 9 years faster. So instead of a 25 year mortgage, now you’ll pay only 16 years!