Wanna know how to knock eight years off of your mortgage? Hey there, Jenevieve Croall here, with JLUX Homes. I specialize in helping sellers get the most out of the value of their home when selling. But if you plan to stay in your home, here’s some fantastic information about how you can knock eight years off your mortgage! This mortgage hack is not a new concept, but it’s Brilliant.
All you have to do is make half of your mortgage payment every two weeks. That results in 26 half-payments, which equals 13 full monthly payments each year. That extra payment can knock eight years off a 30-year mortgage, depending on the loan’s interest rate.
Can you imagine what life would be like without a mortgage payment?
• Would you buy a vacation or investment property?
• Would you travel through Europe?
• Or maybe you would give money to your favorite charity.
These are all motivating things to consider. But before you start making extra payments, check with your mortgage company first. Some companies only accept additional payments at specific times or may charge prepayment penalties.
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 on every second deposit. This method will allow you
to save for that extra yearly payment.
In any case, I don’t recommend paying a fee to initiate a biweekly mortgage plan when
this is something you can accomplish on your own. Hopefully, this information was helpful to you, and feel free to pass it along to someone you know. As always, thank you for considering our team for all your real estate needs. Bye for now
