5 Uncomplicated Ways To Pay Off Your Mortgage Quicker

Tax Refund

If you get a tax refund every year, you can make a serious dent in your mortgage. You have the power to pay it off so much faster. Let’s say you have a four thousand dollar refund due. Let’s say you just bought a house and you owe $300,000 at 4.4 percent. Your monthly payment is just over $1,500 per month for thirty years. If you only pay what you owe every month, you’ll pay a total of $540,822 for your home. If you apply your entire four thousand dollar tax refund to your mortgage every year using a biweekly payment plan, you’re already paying $19,500 because you’re making an additional payment every year paying bi-weekly. Now that you’re adding an additional four thousand dollars from your refund to this amount, you’re paying an additional $153.84 every two weeks. This equates to a total of $441,358 for your home for just under nineteen years, meaning your mortgage is paid off more than eleven years early and for $100,000 less.

Continue reading to learn why you should maintain the same monthly payments.