How To Pay Off Your Loan Faster

Getting a loan is part of the process for many home buyers. But, that's only the beginning of your homeownership journey. For generations, homeowners would buy a home for life. Working over the years to make the payments and celebrating the end of the 30-year mortgage were great milestones.

Today, few homebuyers expect to be in their home for longer than 7 - 10 years. Paying off a 30-year mortgage seems like an impossible task. Fortunately, there are great ways to pay off your loan which do not involve time. Here are some home loan strategies to help you pay off your mortgage loan faster.

How To Pay off Your Mortgage Faster

• Biweekly Payments – Work with your lender to determine how they handle biweekly payments. If processed immediately, you can save 8 years of payments on a 30-year loan.
• Extra Payments – By making just one extra payment each year, you can pay off your loan 11 years earlier.
• Refinance to 15 years – There are great interest rates available for mortgage loans. Consider a 15-year mortgage.
• Principal Reduction – Watch for ways to add to your monthly payment a little at a time. When possible, increase the principal payment you make.

Paying off your mortgage builds wealth. 

Making payoff a priority and having great credit is a real plus as it can add up to huge savings in interest which can then be used for better investments.