December 8, 2006, Newsletter Issue #108: Prepaying a Mortgage

Tip of the Week

If you are fortunate enough to have your income rise year after year, you may find yourself in a position to make larger mortgage payments than required by the terms of your loan. This is a great way to pay off your loan faster. However, since mortgage interest is tax deductible, consult your tax adviser first. Some people opt for a bi-weekly mortgage, where half of your monthly payment is paid every two weeks. This payment plan results in, effectively, an extra payment each year, since you're making 26 half payments, vs. 12 full payments. This is a great way to get your mortgage paid off faster, and works especially well for people who get paid bi-weekly.

About LifeTips

Now one of the top on-line publishers in the world, LifeTips offers tips to millions of monthly visitors. Our mission mission is to make your life smarter, better, faster and wiser. Expert writers earn dough for what they know. And exclusive sponsors in each niche topic help us make-it-all happen.

Not finding the advice and tips you need on this Real Estate Tip Site? Request a Tip Now!


Guru Spotlight
Ray Lokar