The faster you can pay off your mortgage, the more you'll save in interest and the faster you can build wealth. Here are five ways to do it sooner:
- Add a bit to your monthly payment. Finding an extra $50 each month could shave years - and thousands of dollars - off your mortgage.
- Make a yearly pre-payment. Put a lump sum on your mortgage each year, eg. tax refund or bonus. There is a much greater impact when made early in the mortgage.
- Increase your income? Increase your payments. Just pretend your income didn't increase and maintain your usual lifestyle.
- Choose bi-weekly payments. Instead of paying monthly 12 times per year, pay every two weeks for 26 payments, giving you one more payment each year.
- Stay informed. Don't let your mortgage go on auto pilot. Save money at renewal and take advantage of opportunities.