If you're serious about paying off your mortgage quickly, realize that every dollar you add to your regular payment each month puts a bigger dent in your principal balance — and you don't have to double-down to make a difference. Adding even one extra payment each year knocks years off your mortgage.
Here are some options for paying extra and how those extra payments affect a 30-year mortgage.
Switch to a biweekly payment
Make extra principal payments
Refinance into a shorter-term loan
Of course, paying off a mortgage isn't always necessary. If you have a very low rate, you may think that you get a better financial payoff by putting all your extra money into investments instead. That can be a wise move — put extra cash into retirement accounts or other investments and let the mortgage run out on its own.
As you plan, keep in mind that tax rules, the particular terms of your mortgage, and your overall financial situation can change the equation. Be sure to discuss your plans with a financial professional.
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