How do I pay off my mortgage faster?
Paying off your home doesn’t have to take a lifetime. By planning ahead and sticking to the plan, you
have the opportunity to pay your mortgage off faster. Here are seven ways to pay your mortgage down
faster and decrease the amortization and interest costs off your mortgage:
- Choose a mortgage with a prepayment option - A prepayment option gives you the right to
prepay specified amounts of your mortgage principal
- Shorten your amortization period - By shortening your amortization period to less than 25
years you can create huge interest savings
- Increase your regular mortgage payment - Increasing your regular mortgage payment helps
you reduce your mortgage principal faster, which means you save interest
- Increase your mortgage payment frequency - If you increase the frequency of your mortgage
payments from monthly to accelerated bi-weekly, you are making one additional monthly payment
every year, which will cut your interest cost over the life of your mortgage
- Invest your tax refunds and cash windfalls - If you find yourself with more money than you
anticipated, you should consider making a lump-sum mortgage payment against the principal.
Your mortgage principal will decrease and you won’t have to change your spending habits
- Invest your pay raises – If you find yourself with a pay raise, increase your mortgage payment
amount. Increasing your mortgage payment helps you to reduce your mortgage principal faster
- Keep your mortgage payments high - When the time comes to renew your mortgage, keep
your mortgage payments high even if you’re tempted by lower interest rates and a lower monthly
payment. If you stick to your original plan, you’ll pay off your mortgage faster and enjoy huge
interest savings over the life of your mortgage.
Try our CENTUM Pre-Payment Mortgage Calculator
Use our online Prepayment Analyzer Mortgage Calculator to calculate your mortgage payment. Discover
how many years you will shorten your amortization and how much interest savings you will realize by
making a prepayment (lump sum) on your mortgage.
Buying a home is one of the biggest financial decisions you will make. It’s important that you are making
an educated decision with someone looking out for your best interest. CENTUM Financial Group can