4 Simple Methods to Pay Your Mortgage Quicker
Bi-Weekly Mortgage Payments
How to Set Up a Biweekly Mortgage Payment
- Locate the principal and interest portion of your payment on your monthly statement and simply divide that number by two. For example, if the principal and interest portion of your payment is $1,500, your new biweekly mortgage payment is $750.
- Don’t forget to include the tax and insurance portion of your payment each month. In this $1,500 payment example, the $750 biweekly payment only covers principal and interest. You’ll have to pay the tax and insurance portion of your payment in addition to that.
- Find out how or if your mortgage company handles biweekly mortgage payments. Some lenders will process biweekly payments while others refuse to accept partial payments at all. In any case, do not pay a fee to initiate a biweekly mortgage plan.
- If your lender isn’t open to biweekly payments, open a new bank account exclusively for your mortgage payment. Deposit your half-payment every two weeks and use that money to make your full mortgage payment (either by check or automatic payment) on every second deposit.
- A biweekly payment is not a substitute for gazelle intensity. Once you reach Baby Step 5, start putting as much money as you can toward the mortgage to pay it off even faster.
1. Make an Extra House Payment Each Quarter
You’ll pay your mortgage off 11 years early
2. Bring your Lunch into Work
Imagine this, 6$ a day, 5 days a week….52 weeks a year. That’s $1,560 a year in just lunchs. ($6 is conservative too) That’s likely a mortgage payment or two every year right there.
3. Refinance (Or act like you did)
You can always pay your 30 year mortgage like you are in a 15 year mortgage!