5 Tips to Payoff Your Mortgage Faster
A 30-year loan may be the most popular type of loan out there, but three decades of mortgage payments can seem too long for some. The good news is there are several ways to pay off your mortgage faster.
• Refinancing to a shorter-term is a popular way to shave time off your loan. You can choose between a 25, 15, 20, or 10-year term for your new loan.
• Pay extra when you have the money is another way of paying your loan off faster. You won't just shave off years on your term, but you'll also save on interest payments.
• Recast your loan. This is different from refinancing because you don't refinance your current loan. Instead, you make a large lump-sum payment and ask the lender to adjust your payoff schedule now that it has a new, lower balance.
• If you can't pay extra every month, just make one extra mortgage payment each year.
• Round up your mortgage payments by rounding up to the next highest $100 amount. For example, pay $900 instead of $867.