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Wednesday, October 30, 2013

4 Tips To Paying Off Your Home Early

Paying down mortgage ahead of schedule can save you big

In the wake of the financial meltdown, a growing number of homeowners are attempting to pay off their mortgage early. If you want to avoid the risk and uncertainty of incompetence in government and a banking industry that relies on corporate welfare here are four tips to paying off your mortgage early.

1. Biweekly Payments

There are 52 weeks and 12 months in the year. If you pay one-half your mortgage every two weeks, at the end of the year you will have made 26 half-payments, or the equivalent of 13 full monthly payments. Using this method will pay off a 30-year mortgage six years early.

2. Money Merge Account

This is a type of mortgage that is set up like a home equity line of credit. The idea is to put more money in the account than is drawn out at the end of the month to pay your bills. The more money you put in the more interest you earn and this in turn reduces the interest payment on your loan. It puts more of your monthly payment towards principal over time and reduces the time to pay off the loan. However, it takes a lot of self-discipline to keep a positive balance.

3. Shorter-Term Loan

Refinancing a 30-year loan to shorter period will cost you more per month but the loan will be paid off earlier and more of your money will go to principal. 15-year mortgages are the most common. At 5 percent interest, your principal and interest payments are $537 on a $100,000 30-year loan. On a 15-year payoff schedule, your payment is $791 or $254 more per month but the loan is paid off in half the time.

4. Make principal payments

Every time you make a payment towards principal, you increase the amount of future principal payment. Every payment you make in the future will have less of an interest expense. This has a compounding effect that will reduce the time it takes to pay off your mortgage.


Half A Payment ( is a biweekly payment option that has helped thousands of customers better manage their finances and achieve their long-term financial goals. Half A Payment also provides processing of biweekly mortgage payments and just about any biweekly payment solutions for any monthly bill. Half A Payment allows you to easily customize the timing of your payment.

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