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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.
|Sheri Ann Richerson|