Bi Weekly Payments Pay Off Your Mortgage
One of the best ways to pay off your mortgage sooner is to learn to beat the bank with it’s own “force”. Paying off the mortgage is the number one goal of any home owner. Once you finish the payments you become a true owner of your property, and the extra free cash becomes your oxygen for the good life.
Pay Off Mortgage With Bi Weekly Plan
US News has some more advice about the bi weekly mortgage payment plans:
Consider these strategies:
1. Make a large lump sum payment to pay down your mortgage. If you’re expecting a sizeable tax refund this year or are enjoying a financial windfall, use that money to make a larger mortgage payment; just one big payment towards the principal could reduce your monthly payments for the rest of the year. It’s a simple way to free up some extra cash and reduce that debt load fast.
2. Be careful about bi-weekly payment options. Making bi-weekly payments instead of monthly can help you save money by paying down the mortgage faster, but your lender might charge you an upfront fee for the option. Make sure you’re factoring in this fee if you decide to switch from bi-weekly to monthly payments. Read more..
Eight More Ways To Pay Mortgage Faster
Do Effort To Add Funds To The Mortgage
Lowering the principle is the best advice to lower you mortgage and pay it off sooner. This can be done by focusing as a family on lowering the mortgage when ever funds are available. Here is a story from Yahoo finance of a person who lowered his family mortgage and payed it off two years sooner.
Our Own Extra Payments
As I mentioned, we could have avoided the bi-weekly mortgage payments with additional payments of our own, since in effect, our bi-weekly plan was the equivalent of adding an extra full mortgage payment a year. However, since we had already paid the nearly $200 application fee and got everything set up for our bi-weekly payments, I figured we might as well continue them.
This didn’t however stop us from making extra payments of our own whenever possible. Whether we got our tax returns, holiday money, or just had some extra cash saved up, we often made transfers from our bank accounts to our home mortgage to pay it down faster. By the end of the three-year stint in our home, we had shaved an additional two years time off our 15-year mortgage through our efforts in this area. Read more..
So What Is The Next Step?
If you will do nothing.. don’t expect anything to happen. You must bump your credit score up! It will give you better leverage when facing the lenders, and better negotiation position when applying for any financial need.
Lets not forget you are probably paying $500-$1000 extra per year in higher interest rates, and credit payments.
If your score is below 700, you might want to clean it yourself – get this ‘Credit Repair University’ which will save you money and time.
Yes, you might need to invest a small sum to get a grip of things.. But if you think education is expensive.. try ignorance..
You are probably paying thousands of dollars per year in fees and interests to credit companies which could be going straight to your pocket. Don’t be cheap when it comes to financial education.. Ignorance costs more.