How to Repay a Mortgage Faster

When you bought your house, you took on a mortgage you thought at the time was much more than you could afford. That was a few years ago, and now you would like to begin paying your mortgage off faster. There are several ways that can be done. Your individual circumstances will dictate which one makes the most sense for you.

Instructions

1

Simply add to each of your monthly payments on your mortgage. Not only will you pay off your mortgage faster, you will pay far less interest on it than if you paid only what was due.

2

Make half payments every two weeks. At the end of the year, you will have made 13 payments on your mortgage instead of 12. Believe it or not, but you will pay off your 30-year mortgage in less than 20 years by doing this. This is especially helpful for those people who are paid bi-weekly.

3

Make one extra payment on your mortgage each year. This is a painless way to pay off your mortgage early if you receive a year-end bonus because you will hardly miss it.

4

Make a lump-sum payment on your mortgage to reduce its maturity. This can be done painlessly if you receive a inheritance or your bonus from work is especially healthy.

5

Refinance your mortgage for 15 years instead of the traditional 30 years. This is a particularly good way if interest rates are less than they were when you took out your mortgage. Furthermore, the interest rate is less for a 15-year mortgage. If you lack the discipline to do any of the methods above, you will find that this will force you to make increased payments. If you choose to do this, try working with your current lender to keep the refinancing costs to a minimum.

6

Rent your home rather than sell it. If you have decided that you need a house with more room, this may be an alternative you should explore, particularly if you have the down payment to purchase a larger home. This method works particularly well if your tenant pays rent in excess of your monthly mortgage payment because you will be able to pay your mortgage off faster with the increased payments.