One Extra Mortgage Payment a Year Will:
- Shave off years from the life of your loan.
- Will save you tens of thousands of dollars (or more) of interest, depending on the amount borrowed and interest rate.
- If you borrowed more than 80% of your home’s appraised value, the extra payment will help you reach the 20% equity and eliminate the PMI premiums.
Ways to Reduce Your Mortgage:
- Write one additional check per year to your lender to be applied directly to principal.
- Split each of your normal monthly payments in half and pay biweekly.
- Even if you don’t pay an extra month’s mortgage a year, an extra $10, $20, or $30 (or more) a month helps reduce your loan.
- Always make sure any extra payments are applied towards your principal.