Paid Mortgage

A home is one of the biggest investments that most people will ever make.  However, unlike most other big investments, your home is one of the few that may cost you substantially more than what you initially invested into it (considering all of the extra money you pay out due to the interest on the loan).  There are several strategies in lowering these extra costs; consequently you will be paying off the loan faster.

Since interest is based on time, you can actually cut back the total cost of your loan by paying more often, even without paying more money.  In other words, pay half of your regular mortgage payment every two weeks rather than the entire amount once a month.  This reduces the principle more often so the total interest generated is less.

Another sure way to reduce the duration of your mortgage is to pay extra each month.  An extra $50 each month can make a noticeable difference in your loan duration.  Another way is to add an extra payment at the end of the year (13 payments throughout the year versus 12 payments).  This lumps a large amount into one payment, unlike the smaller payments over a longer time, making this method less desirable to most people.  To find out more check out the monthly loan calculator on