Use the mortgage payoff calculator and see how fast you can pay off your home! But if you switch to a 15-year mortgage with a lower interest rate, you’ll save almost $100,000-and you’ll pay off your home in half the time! If you keep the 30-year mortgage, you’ll pay more than $158,000 in total interest over the life of the loan. Let’s see how this would impact our earlier example. Based on our example, you’ll pay your mortgage off a year early, saving over $6,000 in the process.Īnother way to pay off your mortgage early is to trade it in for a better loan with a lower interest rate and a shorter term-like a 15-year fixed-rate mortgage. Put Andrew Jackson to work for you by adding just $20 to your mortgage payment each month. Even small sacrifices can go a long way to help pay off your mortgage early. Based on our example above of the $220,000 loan, that $100 in lunch money will help you pay off your mortgage almost five years ahead of schedule and save you over $27,000 in interest!Ĭan’t quite spare a whole $100 from your food budget? No worries. Suppose packing your lunch frees up $100 to use toward your mortgage every month. But trading lunch out for eating in can make you a lean, mean, mortgage-free machine. Sure, bringing a peanut butter and jelly sandwich to work every day isn’t as fun as going to a restaurant with your coworkers. So if your lender only lets you pay biweekly by charging you a fee, don’t sign up. The real reason it helps pay off your mortgage faster is because your extra payments add up to 13 monthly payments per year instead of the standard 12. Remember, there’s nothing magical about them. Based on our example above, that extra payment can knock four years off a 30-year mortgage and save you over $25,000 in interest.Īre biweekly mortgage payments a good idea?Ī biweekly payment plan can be a good idea-but never pay extra fees to sign up for one. That results in 26 half-payments, which equals 13 full monthly payments each year. This means you can make half of your mortgage payment every two weeks. Some mortgage lenders allow you to sign up for biweekly mortgage payments. What does paying your mortgage biweekly do? You can accomplish the same goal all by yourself.
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