3 Ways to Pay More Towards Your Mortgage Principal
Pay off your mortgage faster with these tips.
Plus, use our extra payment Mortgage Calculator to see how much you would save over the life of your loan.
What homeowner wouldn’t love to pay off their mortgage and not have to worry about home payments anymore? Although this isn’t always realistic, circumstances can change and you might find yourself in the position where you can make extra payments towards your house. Making even a few extra payments towards your home could result in incredible savings over the life of your loan and enable you to focus on other financial goals.
Some benefits of making extra mortgage payments include:
You can save on interest over time
While there isn't much of an exciting initial payoff in interest when you make strides on your mortgage in larger increments, it can eventually accrue some significant savings. By using our mortgage calculator below, you can determine how much you'd save on interest if you made extra payments towards your home loan.
You can lessen the term of your loan
If you're tied into a 30-year mortgage loan, you might feel like you'll be stuck with your payments forever. However, making extra payments can help you shave years off your mortgage loan term. This reduction can help you when it comes time to focus on other financial goals, like retiring comfortably or sending a child to college.
You can prepay at the beginning
Usually you don't see many homeowners who can immediately prepay when they get a loan, but if you have the money to do it, you can get ahead on your mortgage loan payments. This is especially helpful if you don't have a fixed-rate mortgage. You can tackle more of your loan while your rate is still relatively low, before it becomes more difficult for you to do so.