How To Reduce Mortgage To 15 Years

How to cut your mortgage by ten years.

How to reduce mortgage to 15 years. In order to pay off this 30 year mortgage in 15 years you would need to pay an extra 515 month. Decide whether paying off your mortgage is the best use of your money. How to reduce the years on your mortgage. Contact the lender and request a biweekly payment.

Bi weekly payments add up to another 86 month but that extra money will shorten your mortgage payoff by four and a half years. If you can refinance your mortgage at a lower interest rate your new loan will likely have a lower monthly payment. So another option is to consider refinancing your mortgage which can help ensure a lower interest rate and potentially smaller monthly payment. Run the numbers to see how much you need to pay at what frequency to cut the mortgage time.

If you have good credit you can refinance your current mortgage and save a bundle. If you don t want to extend your mortgage repayment term you re not alone. With proper budgeting and planning a borrower can reduce the term of a 15 year mortgage and pay off debt early. Pay off a 30 year mortgage in 15 years with disciplined extra payments put toward your loan s principal.

Take advantage of a shorter term. There are a number of factors to take. Sending in a separate check. Make a lump sum payment.

One extra monthly payment per year on a 15 year mortgage reduces the term by 2 years. Enclose the lump sum payment with a regular monthly payment or make it. Consider your interest rate and calculate your savings on taxes and property taxes to make certain that paying. How to pay down the principal with a 15 year mortgage step 1.

15 year mortgages come with lower interest rates because they present less of a risk to lenders than a 30 year mortgage. Remit regular principal only payments throughout the life of the loan. Two extra monthly payments per year reduces the term by another full year. Contact your lender and inquire about prepayment penalties that the lender may levy against you if you begin prepaying your mortgage.

Bi weekly payments provide a good middle ground. At the end of each year you will have made an entire.