If you make one extra payment each year, you can save thousands of dollars in interest on your mortgage over the life of your loan. You can either make a lump-sum payment or even spread the extra payment out over the year. For example, if your monthly mortgage payment is $1,200, you could add an extra $100 to your payment each month, which would add up to an extra $1,200 for the year.
Another simple way to pay off your mortgage more quickly is to round up your payments. For example, if your mortgage payment is $1,510, you could round up to $1,550. The extra $40 might not seem like much, but over time it can help you save thousands of dollars in interest over the life of your loan.
If you receive a windfall, or found / unexpected money, such as a bonus, tax refund, or inheritance, consider using the money to make extra payments on your mortgage. Even a smaller extra amount can make a big difference in reaching your financial goals.
Paying off your mortgage faster doesn't require bi-weekly payments. By making an extra payment each year, rounding up your payments, refinancing to a shorter term, making extra payments with windfalls, and making principal-only payments, you can pay off your mortgage faster and save thousands of dollars in interest during the process. The expert staff at Standard Mortgage (NMLS#:44912) has been helping homebuyers and homeowners for over 90 years.