5 Uncomplicated Ways To Pay Off Your Mortgage Quicker

One Extra Monthly Payment A Year

If you’re not in the market to pay your mortgage weekly, you could still make one extra monthly payment a year. This is beneficial not only to help you pay off your mortgage faster but also because you get a small tax break for doing so. You pay more mortgage interest if you make one more payment before the end of the tax year, which allows you to deduct more mortgage interest to lower your tax liability. If you make one additional monthly payment every year to your mortgage company, you’re looking at knocking anywhere from ten to twelve years off the life of your loan. That extra payment is all principal, which means you’re lowering the amount of interest you pay. Let’s say you take a $300,000 mortgage. Depending on the interest rate you have, you’re looking at paying approximately $250,000 in interest over the life of your loan. If you can knock out one additional payment, you’re saving a lot of time and interest.

Continue reading to learn how tax refunds can help with mortgages.