There’s a really simple and effective trick for paying off your 30-year mortgage in just 22 years that I wanted to share with you. In fact, there are two ways.
Say it’s tax refund time or Christmas, and you’ve come across a little extra money. **Did you know that if you make a 13th mortgage payment each year, you’ll knock eight years off of the life of your 30-year mortgage? **
The second strategy is especially helpful for those who get paid on a bi-weekly basis. Instead of making a monthly mortgage payment, talk to your mortgage company about setting up bi-weekly payments on your mortgage. Since there are 52 weeks in a year, making half of your mortgage payment every two weeks rather than a full payment every month equates to making 26 half payments over the course of the year. Of course, that equates to 13 full payments a year instead of 12, which you would get by making one full payment per month.
Just like in the first scenario, you would knock eight years off of your 30-year mortgage. Think of the savings in interest!
If you have any more questions about this topic or you’re thinking about buying or selling a home, give me a call or send me an email. I’d love to hear from you!