How to Pay Off a 30-Year Mortgage in 23 Years—Without Extra Principal Payments
Paying off your mortgage early might seem like a distant dream, but with the right strategy, it’s more achievable than you think—without even making extra principal payments! One simple approach is to switch from monthly to biweekly mortgage payments. This method allows you to pay off your loan faster and save on interest, all without drastically changing your budget.
What Is a Biweekly Mortgage Payment Plan?
Most homeowners make their mortgage payments once a month. But did you know you can pay down your mortgage more efficiently by splitting that monthly payment in half and paying it every two weeks? That’s the idea behind a biweekly payment plan.
Here’s how it works: Instead of making 12 monthly payments in a year, you make 26 biweekly payments, which equals 13 full monthly payments. This extra “13th” payment goes directly toward your loan’s principal, helping you pay off your mortgage faster.
How Biweekly Payments Save You Time and Interest
While it might not sound like much at first, this extra payment can shave years off your mortgage and save you thousands of dollars in interest. Over time, that extra payment reduces the balance on your loan, which means you’re paying less interest overall. As long as your lender or servicer applies that extra payment to your principal, you’re on your way to financial freedom even faster.
Can You Add Extra Principal Payments to This Strategy?
Absolutely! If you want to supercharge your progress, you can opt to add a little extra to each biweekly payment. Even adding as little as $50 to each payment can make a significant impact over time. While this isn’t necessary to reduce your mortgage term to 23 years, it’s a great option if you have some extra wiggle room in your budget.
Is This Strategy Right for You?
Biweekly payments can be a game-changer for many homeowners, but it’s not the best fit for everyone. Before jumping in, it’s a good idea to check with your lender to make sure they offer biweekly payments and confirm that the extra payment is applied to your loan’s principal.
While we are not lenders, we are here to help! If you’d like to explore whether this approach is right for you, or if you need a trusted lender to guide you, we are happy to connect you with professionals in our network. Let’s chat!
Warmly,
Lauren & Cambron | Lauren Zurilla & Associates