Follow these simple tips, provided by Forbes.com, to pay down your mortgage!
(Before making extra payments, make sure there are no prepayment penalties.)
Sending in extra payments is the most efficient way possible– What you need to find out is how your lender accepts extra payments. Can you automate the extra payments separately or should you send it on top of your current payment? Make sure your lender takes the extra off of the principal amount of the loan.
Set your payments to Bi-Weekly– Some mortgage lenders offer bi-weekly payment programs. Since there are 52 weeks in a year, you would makee 26 half payments using this method, which equals one extra payment per year.
Squeeze out more for you principal by shopping around for Homeowner’s Insurance– Each month you have to set aside money towards you annual Homesowners Insurance cost either through an escrow account or on your own, if you could lower your homeowners insurance costs, then you can send in the extra money towards your actual principal. So be sure to shop around.