If you\u2019re like most homeowners, your mortgage is one of your biggest monthly expenses\u2014but there are easy and effective ways to pay down the principal faster and save money.<\/p>\n
Understand the Principal<\/b> When you pay more toward your principal, you save in two important ways:<\/span><\/p>\n Make Progress with These Mortgage Payoff Strategies<\/b><\/p>\n Pay a Little Extra Each Month<\/b> A helpful trick is to round up your payment. For example, pay $1,500 instead of $1,435. That additional $65 each month can make a surprising difference over the life of your loan.<\/p>\n It\u2019s a good idea to confirm with your lender that the extra funds go directly toward your principal\u2014not future interest or scheduled payments. Some lenders require notification or have prepayment penalties.<\/span><\/p>\n Make Biweekly Mortgage Payments<\/b> Make sure that the additional payment goes straight to your principal.<\/span><\/p>\n
\n<\/b>Your principal\u00a0is the original amount you borrowed to buy your home\u2014not including interest, taxes, or insurance. Each time you make a mortgage payment, part of it goes toward\u00a0reducing your principal, while the rest covers interest.<\/span><\/p>\n\n
\n<\/b>One simple way to speed up your mortgage payoff is to add a little more to your monthly payments. Even $50 or $100 more each month can make a big difference over time.<\/span><\/p>\n
\n<\/span>Instead of one monthly payment, make half-payments every two weeks. Over a year, this equals 13 full payments instead of 12\u2014accelerating your payoff without much strain on your budget.<\/span><\/p>\n