Paying Off Mortgage Faster

I would assume that there is a fee for any such company and I would think applying the money you would pay to them toward your principle would be more efficient and pay your mortgage off quicker. I have also heard if you can pay an extra $100 a month or an extra payment a year this significantly decreases the term of your loan. Someone else on here might have better advice for you shortly.

Call your mortgage company and find out if your contract has an early payment penalty. Some of them do so you need to be aware if yours does. If it does not then send them extra payments every month. Keep in contact with your company to insist the extra payments are going to the principle. Some will try to just put in towards interest which won't help you. By decreasing your principle you decrease the interest and in the long run you won't pay nearly as much. By sending it in yourself you can assess your finances on a constant basis and can send in what you can afford not what someone else deems you should send in. Now on the ones that have an early penalty for payoff you have to assess your situation. Sometimes paying it off early and having to pay a fine will still save you money.

I have heard on the radio lately some mortgage lender that has a product that they claim lets you pay off the loan in 7 to 10 years . . . . I can't remember what it is called, but I was curious too on what they are talking about . . . . I don't see anyway to pay a mortgage off faster that doesn't require you to pay more then your monthly payment.

I always have heard that it isn't a good idea to pay off your mortgage for tax purposes. I could be wrong but that's what I always thought.

Does anyone else have an opinion on that?

ladybug

ladybug,
That is because once you pay your mortgage off you lose the interest deductions.

But the way I see it for what you "lose" in deductions you gain 1,000's each month in not having a payment!!

Ok that makes sense.

ladybug