Make Biweekly Payments Instead of Monthly
One of the simplest and most effective ways to pay off your mortgage faster is by switching from monthly to biweekly payments. Instead of making 12 full payments a year, you’ll make 26 half-payments, equating to 13 full payments annually. This extra payment goes directly toward reducing your principal balance, shaving years off your mortgage term and saving you thousands in interest.
The beauty of biweekly payments lies in their subtlety. You won't feel the pinch of an extra payment because the smaller, more frequent installments align well with many people's biweekly paychecks. Over time, this strategy can significantly reduce the overall cost of borrowing without requiring drastic changes to your budget.
- **Tip:** Before implementing this tactic, consult with your lender to ensure they accept biweekly payments without penalties.
- Some lenders might charge fees or fail to apply the additional amount properly, so it’s crucial to clarify their policy beforehand.