Pay Down 15 Year Mortgage Faster

If you can swing it why not increase your payments to pay it off in 10 years.

Pay down 15 year mortgage faster. Assuming you have a 200 000 mortgage at a 4 interest rate you d need to pay an extra 500 a month toward your principal to drop your repayment period to about 15 years. How to pay down the principal with a 15 year mortgage step 1. There are a number of factors to take. Cutting your loan term in half is a big financial step but the benefits are substantial.

The same goes for a 15 year mortgage. Refinancing into a shorter term loan such as going from a 30 year mortgage to a 15 year mortgage can also help bring down your interest rate while putting you on the path to early payoff. You can refinance a longer term mortgage into a 15 year loan. If your cost of money is the same rate as the interest rate to the bank then it doesn t matter.

Decide whether paying off your mortgage is the best use of your money. 5 ways to pay off your mortgage faster 1. Consider your interest rate and calculate your savings on taxes and property taxes to make certain that paying. That may be a tall order.

Pay cash and not get a mortgage or finance for 15 or 30 years.