I am on a 30yr. house loan so my house will no t be paid off until I am 65yrs.?

Question

I would like to get my house paid off by the time I am 55yrs. I am presently 37 yrs old. What should I do to accomplish this goal?

Answer 1

Make extra payments. I refinanced mine to a 15 year mortgage. My interest rate was lowered by 1.5%. I figure over the life of the loan I will save $120000 in interest.

Answer 2

That's a great question.
What many people do not take into account is that there are easy ways to may down a mortgage sooner.
The first and easiest way is to change your payments to bi-weekly rather than monthly. This will take about 7 years total off of your 30 year fixed. Why this makes sense and actually works is that by making bi-weekly payments you are actually making 2 extra bi-weekly payments a year (or 1 extra month).
Everything that you pay extra will go directly towards the principal balance so, with a relatively slight increase in your payments and a bi-weekly payment schedule you could definitely have your loan paid off in 18 years.
Also, since it looks like you're about 2 years into it it, depending on your interest rate, it may be benificial to refinance either into a 15 yr. Fixed Product (depending on whether or not you can handle the payments, your credit history, and how your house has appreciated.)
Another recommendation which may sound crazy but makes clear sense is, once again, depending on your interest rate and the other guidlines above, refinance into an 10 yr. interest only (b/c you can get ultra good pricing), and paying it with both pricipal and interest in a bi-weekly payment schedule.

Just think creative, and keep asking for advice. There are many different options that could get you the results you want.

Answer 3

Your present mortgage company can give you an amortization schedule that can show you how much to pay each month to have it paid off in the month and year you want it paid for in full. Most brokers can do the same thing for you, and if you haven't had a mortgage check-up in tha past three years, you should do one free with a reputable broker. Or use a free calculator on the web - see a site like fnmshome.com

Answer 4

An 18-year payoff is easily done by adding about $100 extra to the payment every month.
You can ask the mortgage department at your bank for an exact amount, and they are always happy to have a loan retired early, so will help you set up the new payment and even deduct it automatically from your account.

Answer 5

watch the prime interest rate,,when it went down a few years back I refinanced and went from 8.56% to a fixed rate of 4.5%...if it does not drop to like - 2 pts. probably won't help but in my case it was the smartest thing i ever did. i had a 30 yr. mortgage and now my house will be paid for in 15 yrs. plus i paid off some other loans and walked away with 2,000 bucks in my pocket! good luck!

Answer 6

Remember the cost of living goes up while your mortugage stays the same if you get a fixed rate. As your income increases put some more money toward the principle and you will get done with the loan sooner and have to pay less interest.

Answer 7

3 main ways to pay your mortgage off sooner.

1. Make one extra mortgage payment a year. Make sure you put in the memo "Apply to principle"

2. Submit your monthly payments with an additional 10% added to it.

3. Submit half your mortgage every time you get paid (assuming you get paid every 2 weeks)

Any one of these will take 7 years off your mortgage. Combine them and you can take off even more time.

Good Luck!

Answer 8

you pay half two weeks before your mortgage is due then the remaining half upon due date so more money goes to principle while still covering interst.....unfortunately some mortgage lenders have picked up on this little math trick and want a piece of the action so they're requiring you to sign up to this plan for a grand or two and do the same thing basically or they'll whip your pee pee by making you call it in coz they will redirect your funds and you will wind up paying a double payment unless you call it in and take their verbal brau beating until you promise to be a good little sally/johnny and not do it anymore k? ...people are *****...

Answer 9

Visit www.WestCoastHomeMortgage.com and submit your info there. We will be in touch with you within 24 hours to assess your situation. Depending on your credit score and loan-to-value ratio, you may be able to get into a 15-year FIXED at roughly 5.75%, possibly better.

Answer 10

You need to pay about an extra $50 or $50,000 a month depending on your loan amt and interest rate!