Want to pay off your mortgage years earlier? It’s a smart plan. Especially because it can save you thousands of dollars in interest. And the best part? You can do it without being locked into a commitment. Now let me explain…
Let’s say you have a mortgage of $80,000 and an interest rate of 7%. If you paid biweekly instead of the conventional 30-year mortgage plan, your savings would be $25,000. The higher your loan and interest amounts, the more you will save. Now I don’t know about you, but I can think of a lot of things to do with that much money.
The best part is, you can make the decision to make biweekly payments now and just start sending extra checks every other week to your mortgage company. No refinancing or special loans necessary. And if you should run into a month (or even a year) where finances are tight, you can resume paying your monthly loan rate with no penalty. But the more payments you send in to your mortgage company, the sooner you will have your home paid off and the less interest you will pay.
Even if you are unable to double your monthly payment, sending any extra money will help make a dent in your loan principal amount and save you money in the long run. It’s one of the smartest investments you can make, so give it some serious thought. And then start thinking about what you’re going to do with all that extra money!
