2007-08-11 03:01:10 · 4 answers · asked by crafty pam 1 in Business & Finance ➔ Personal Finance
One way to pay off your mortgage early without paying more per month is to make bi weekly payments. Suppose that you are paying 8% on the 85,000 over 15 years your monthly payment would be 812.30. Instead you would pay 406.15 every two weeks. You would pay it off in 13 years and save almost $10,000.
2007-08-11 03:37:40 · answer #1 · answered by mark d 2 · 0⤊ 1⤋
An exact answer requires a more precise question. DO you want to know how much extra you would have to pay to pay the loan of by a certain date? Do you want to know when the loan would be paid of with a certain amount of extra payments? In either case, there are many on-line calculators to answer the question. The link below is a calculator from Bankrate.com. An Internet search for "mortgage calculators" should return many more.
mark d's answer is slightly deceptive. Making 26 half payments per year (52 weeks / 2) equals 13 full payments per year. This will pay off the mortgage sooner. The 'deceptive' part is you actually ARE paying more per month.
2007-08-11 12:58:04 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
You can make mid-month payments and specify that those additional payments should go against the principle. A standard mortgage calculates the total interest you will pay over the term of your mortgage and then adds it onto the principle. You probably already know that the lion's share of your mortgage payments in the early years will actually go toward paying the interest with a minimal amount against the principal. The only way to reduce the principal is to make additional payments that are specifically directed toward that part of the loan.
2007-08-11 10:13:30 · answer #3 · answered by Yo' Mama 4 · 0⤊ 0⤋
if your mortgage allows for a early payoff just make larger payment each month!!!
2007-08-15 09:30:21 · answer #4 · answered by mister ed 7 · 0⤊ 0⤋