Here are a few tips to help you pay off your mortgage faster and save you thousands of dollars.
If you are making monthly mortgage payments switch to bi-weekly mortgage payments you are then making 26 bi-weekly payments instead of 12 monthly payments. You are accelerating your payments and paying down your mortgage faster. By doing it this way it adds up to one extra payment a year every year.
Make annual lump sum mortgage payments on the principle. Many mortgages allow you to make a lump sum payment once very 12 months or at renewal time., which is applied directly to the principal. This will shave years off your mortgage and save you thousands of dollars in interest payments.
If you come into a large sum of money through an inheritance or bonus consider making a prepayment, which can shave years off your mortgage.
If you double up on your payments once per year for 25 years, on a $250,000.00 25 year mortgage at 5% you can save over $30,000.00 and shave 3 or more years from your amortization term. So just imagine what you could save if you could double up 2 or 3 times a year!! That mortgage would be paid off in no time.
Speak to your mortgage specialist to see what will work to help you save thousands in interest and shave years of the mortgage.