New Trick Cuts 10 Years Off Your Mortgage – Smarter Finance Journal

New Trick Cuts 10 Years Off Your Mortgage

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mortgagesavingsThe scariest part of buying a home is the specter of a mortgage that will take most of your life to pay off. This commitment can have a severe impact on your planning as it applies to family, retirement and many other areas.

Anyone who’s in this situation is probably wondering about ways they can make it easier to pay off their mortgage, and do so in a shorter amount of time. How can you find mortgage relief? There are many different strategies that are utilized with varying levels of effectiveness, but one approach stands out above all others.

Biweekly Payments

Here’s a secret method that is quickly gaining popularity: make biweekly payments rather than monthly payments. The way this works out over the course of the year, with some months being longer than others, means that you’ll end up making the equivalent of 13 monthly payments annually rather than 12.

This is because there are 52 weeks in a year, rather than 48 — which would be the total if there were exactly four weeks per month.

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Because you’re essentially paying half your monthly mortgage at the halfway point of each month, you won’t notice the impact as much as you might think. Obviously you’ll have to make a few tweaks in your spending and planning, but this approach is easier and more manageable than most others you’ll find.

How big are the benefits? Well, huge. By taking this route, you will save thousands of dollars and take years off your mortgage. On a 30-year loan, you can cut years off the total payment time, which will pay enormous dividends.

If you’re struggling with the challenges of a lengthy mortgage, you should consider this method to reduce your stress and worries. In the long run, you’ll be very thankful you did!

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