How is the best way to reduce years in your mortgage without a lot of money? I don't want to pay for 30 yrs.

Answer 1

Ways to decrease term of mortgage:
- refinance for lower interest rate, but continue making the same payments each month as before
- pay more per month
- that's it...

Answer 2

If you pay an extra payment per year you could drop the mortgage from 30 years to about 27. If you cut out some living expenses fat and pay double the amount per month and you can pay it back in about 1/2 the time or 15 years. Remember to pay towards the premium not the interest of the loan.

Answer 3

I give everyone this advise.. Take the 30 year mortgage and break down your payemts into bi monthly method.. So if you pay 1,000 a month break it down into two payments of 500 every two weeks.. The bank puts the second part of the monthly payment towards the principal amount..Simple put your making an extra payment a year and reducing your principal amout.. You will start to see your principal amount reduce dramticaly in about 3 years. This would reduce your 30 years to roughly 17 years..

Answer 4

Look at your payment book. It will often list how much of your payment is interest and how much is principle. At the beginning of a loan, most of the money is interest and only a small amount is principle. Anything you pay early has to be applied to the PRINCIPLE. At the beginning of a loan, even $25-50 extra can be the principle for an entire payment, saving you the interest on the payment. Putting that small amount on each month can greatly reduce the cost of the mortgage and pay it off early.

Answer 5

Get an amortization table for your loan. That will tell you how much you pay toward principle each month. If you look you will see that the first few years you pay very little toward principle. I saved up some money and paid the equilivant of 1 years principle all at once. that will actually reduce your loan by a whole year. Look online for amortization calculator. Trick two is to refi for 15 years after you have some equity built up. What interest rate do you have? Did you have 20% down? All that matters.

Answer 6

believe it or not due to compounding interest add just one dollar each month will reduce your mortgage by almost two and a half years.

First off do not fall for the poor advice of some that you may miss a tax deduction.

Then get a program that recapitulate you payout and time if you add a little more each month.

Also pay every two week if you can this will give you 13 payment verse 12 per year.

Most people can relay pay off there house in 20 years or even sooner.

Keep up the good work.

Answer 7

One extra payment a year will reduce a 30 year mortgage to 22 years.

Answer 8

Pay more $$$ each month = pay for fewer months
Pay less $$$ each month = pay for more months

Nothing says you have to get a 30 year mortgage. If you ask, you can probably get any term you want. Also, 15 years is a totally standard mortgage term. Any mortgage company will write you a 15 year mortgage.

Answer 9

There are companies that will set up your payments to withdraw automatically every two weeks. They divide your payment in half, and take half every two weeks. Over the course of a year, you've made one extra payment.

It turns the average 30 year mortgage into 22.5 years.

Answer 10

I was able to pay off my 30 fixed in 15 years by just making one extra payment per year. Just make sure that you write "apply to principal" on the check!