Shave Years Off Your House Mortgage


Dreaming of when your house will be paid off?  One way to pay it off more quickly involves choosing a better mortgage payment cycle.  Most banks offer payment cycle options for home mortgages and if you choose a shorter cycle, you can pay off your house several years earlier.

Where we might tend to take a monthly payment schedule, it’s best to take at the least – bi-weekly or at best – weekly payments, so you’ll be paying down debt more quickly.  When you pay bi-weekly or weekly, the combined total amount you pay each month is generally not much different from the single monthly payment you would otherwise make.  But each payment is applied to the principal when made, reducing interest and shortening the length of your mortgage by several years.

Here’s the catch and there is a slight one.  You need to be prepared for the first month of payments, whether bi-weekly or weekly, because the money will come out of your account (if on auto-withdrawal) at their respective times during the month.  So you need to have enough money in the bank to cover the first payment of the month and that could be early in the month, then the second and so on.

The adjustment to this type of mortgage payment schedule requires a little saving and preplanning, but after the first month, you will not likely notice any difference from being on a monthly plan.

If you want to pay down your mortgage more quickly, visit your banker and discuss their payment cycle options.  Of course you’ll benefit more if you’re at the beginning of the mortgage amortization plan, but there’s still considerable interest to be saved even if you are several years into your mortgage.

Be sure to confirm when this payment schedule can be made and ask about any fees for this change.  Many banks do not charge for this type of payment change, but they are not always eager to have you pay off your mortgage faster, which means less interest revenue for the bank.

Paying off your mortgage faster frees up money for other things, like a retirement savings plan, college fees or home improvements.  Why pay tons of interest, when you don’t have to.

Read about planning for your retirement

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