bec's blog of zanesville ohio real estate

1.  The dollar-a-month plan.  By adding an extra dollar to your monthly  mortgage payment each month - a dollar the first month, two dollars the second month, three dollars the third and so on, you would pay off your 30 year fixed rate mortgage in 22 years says Ginita Wall, CFP, CPA.  To make an even larger dent start at $20 a month and then $21, $22 and so on.

2.  The biweekly booster plan.  Use the mortgage calculator on my homepage to calculate this savings in time and money.  Call your lender before beginning this one.  Some banks charge a fee for the service.  You can't just begin making payments every two weeks.   If your mortgage company does not offer this service or charge a fee, try this, divide your monthly payment by 12 and add that amount to each of your monthly payments.

3.  The 15-year swap.  Typically interest rates are lower on a 15 year than on a 30 year, consider refinancing your 30 year for a 15 year.  This does make your payment increase, however the interest savings is substantial.  Refinancing with your existing bank often will keep the closing fees to a minimum.  Watch for other banks offering special refinancing terms as well.  The bottom line may be worth the effort.  

Not certain about any of these plans, use the mortgage calculators on my homepage to check out the results.  Thank you for reading.

Becky