Want to have a mortgage free life?
There is a simple way to pay off your mortgage, save tons of interest, and it's easy to do. See,
right now, the majority of your mortgage payment is going to interest.
To pay off your mortgage you will need to make sure your payment is
going to the principle.
If you lower the principle on your mortgage now,
instead of throughout the duration of the term, you will save tons of
money and pay off your mortgage at lightening speed. You are going to
have to pay that principle one way or another, but why pay all the
interest with it?
But when and how often do you do that?
To successfully pay off your mortgage 2x as fast pay the principle... each month. Simply pay a little extra money with your mortgage payment each month. Paying
off your mortgage early is really like making an investment. No, you do
not ever get the money back directly, but you will reap the rewards
later... in interest savings and debt free living.
But, how much extra do you pay ?
You
do not want to pay more than you have to, but you do want to pay off
your mortgage as fast as possible and save as much money as possible.
The easiest method to accomplish this is to simply calculate 3-4% of
your monthly mortgage payment. That 3-4% will then become the amount of
extra money that pays down the principle. It's your principle payment.
To
do this all you have to do is take an extra check of whatever 3-4%
happens to be, and make a note to your bank that you want the
additional money applied to the principle on the loan. This should not put too much extra stress on you, but it will help you to pay off your mortgage MUCH faster.
WARNING:
you must write 'for prepaid principle' on the extra check. If you do
not the bank will just count it towards next month's mortgage payment
and you won't pay off your mortgage ANY faster. Read the original article in
here.
