For most of us, paying off a mortgage as quickly as possible is a priority. Here are some ways to pay down extra principal early on, to shorten the life of the mortgage and the interest you'll pay over the years.
1. Round your payments up – this little extra adds up over time.
2. Pay a lump sum whenever possible. Set up a separate Bank Account earmarked for the lump sum payments only.
3. Increase payments when you get a raise.
4. Make bi-weekly payments – you’ll end up paying more toward the principal each year.
5. Keep payments the same when mortgage rates have fallen, particularly when you are in a Variable Rate Product.
Rick Moran, AMP, OMB#M08001997
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