Making monthly mortgage payments can sometimes feel like something you’ll be doing for the rest of your life — but it doesn’t have to be.
Paying off a 30-year fixed-rate mortgage early can save you a bundle in interest charges. For example, if you have a $300,000 mortgage with an interest rate of 5.5 percent, you can cut five years off your loan term and save around $60,000 in interest if you pay one extra payment a year, according to the publication SFGate.
Here are 10 strategic planning and creative cost-saving measures that might require a sacrifice or two, but will help you pay off your mortgage early.
Should You Pay Off Your Mortgage Early?
Before you implement any of the following strategies, make sure that paying off your mortgage early is the best financial decision for you. First, check with your mortgage company to make sure that they accept extra payments without penalties. If they do, make sure you specify that any extra payments are meant to go toward your principal balance, rather than to the next month’s payment.
If your mortgage company allows you to pay off your mortgage loan early and you have the financial means to do so, follow the below tips. There’s no need to pay for a mortgage accelerator program — all of these strategies are things you can easily do yourself.