UNITool
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Ways to decrease term of mortgage:
- refinance for lower interest rate, but continue making the same payments each month as before
- pay more per month
- that's it... |
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godzilla99s
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if you pay just one extra payment in the first year or two you will reduce your payments several years. It sounds funny, but just that extra money on the principal will reduce a few years of interest. |
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bart4play
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Determine your Princ.....
Decide how much LONGER you want to pay......
Go to a Mtg payment book and find the monthly payment....
REMEMBER....This is just for the Prin. and Int......Don't forget to also add in Taxes AND whatever else your monthly payment includes....
There is a sequence of "takes" that the Bank takes from each of your monthly payments...FIRST is INTEREST....And Prin. is LAST... |
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Rachel Green
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make at least one extra payment a year and you'll drastically reduce the number of years, contact your lender to ask about that extra payment going towards just your principal, (your mortgage before interest) |
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toots
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I was able to pay off my 30 fixed in 15 years by just making one extra payment per year. Just make sure that you write "apply to principal" on the check! |
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Amanda H
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There are companies that will set up your payments to withdraw automatically every two weeks. They divide your payment in half, and take half every two weeks. Over the course of a year, you've made one extra payment.
It turns the average 30 year mortgage into 22.5 years. |
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trvrrhds
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ask your bank if you can pay your mortgage repayments by the week not the month this will greatly reduce the overall repayment by years you do not pay more you just pay more frequently. |
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Louis C
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I give everyone this advise.. Take the 30 year mortgage and break down your payemts into bi monthly method.. So if you pay 1,000 a month break it down into two payments of 500 every two weeks.. The bank puts the second part of the monthly payment towards the principal amount..Simple put your making an extra payment a year and reducing your principal amout.. You will start to see your principal amount reduce dramticaly in about 3 years. This would reduce your 30 years to roughly 17 years.. |
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omgmytoof
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I don't think there is one... You owe the bank and they want all the money they can get from you. Only way to reduce payment term is to pay more than you are expected to. Good luck! |
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kittyrogers
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Pay much more than you owe every month (double payments). That's the only way, unless you suddenly strike it rich! |
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?
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If you have the credit score, refinance for 15 years. Then pay a few more dollars on principal with each payment. Every dollar you apply to the principal means you pay less interest. |
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Norm
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One way is to pay your mortgage every 28 days. You gain a payment every year.
Another way is to add $25 to your payment every month. |
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dewcoons
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Look at your payment book. It will often list how much of your payment is interest and how much is principle. At the beginning of a loan, most of the money is interest and only a small amount is principle. Anything you pay early has to be applied to the PRINCIPLE. At the beginning of a loan, even $25-50 extra can be the principle for an entire payment, saving you the interest on the payment. Putting that small amount on each month can greatly reduce the cost of the mortgage and pay it off early. |
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zocko
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Get an amortization table for your loan. That will tell you how much you pay toward principle each month. If you look you will see that the first few years you pay very little toward principle. I saved up some money and paid the equilivant of 1 years principle all at once. that will actually reduce your loan by a whole year. Look online for amortization calculator. Trick two is to refi for 15 years after you have some equity built up. What interest rate do you have? Did you have 20% down? All that matters. |
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Drew
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believe it or not due to compounding interest add just one dollar each month will reduce your mortgage by almost two and a half years.
First off do not fall for the poor advice of some that you may miss a tax deduction.
Then get a program that recapitulate you payout and time if you add a little more each month.
Also pay every two week if you can this will give you 13 payment verse 12 per year.
Most people can relay pay off there house in 20 years or even sooner.
Keep up the good work. |
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sm4125
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Just pay a little extra on the mortgage every month and it will pay off a lot sooner. |
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Mark T
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If you pay an extra payment per year you could drop the mortgage from 30 years to about 27. If you cut out some living expenses fat and pay double the amount per month and you can pay it back in about 1/2 the time or 15 years. Remember to pay towards the premium not the interest of the loan. |
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Lisa A
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Pay more $$$ each month = pay for fewer months
Pay less $$$ each month = pay for more months
Nothing says you have to get a 30 year mortgage. If you ask, you can probably get any term you want. Also, 15 years is a totally standard mortgage term. Any mortgage company will write you a 15 year mortgage. |
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Michael
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One extra payment a year will reduce a 30 year mortgage to 22 years. |
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pcdrny
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I would look into refinancing.
Http://www.thepremieradvantage.net |
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