Paying Off Your Mortgage Early
It takes a thorough financial analysis to consider whether paying off your mortgage early would suit your situation. Paying off the principle of your mortgage early may be the best way to maintain a small monthly mortgage payment while eliminating large interest payments. Most lenders or mortgage brokers recommend a shorter term. However, before taking a decision, consider the following aspects: you will be locked into a much higher monthly mortgage payment, and your payment will be $2,000 on a 15-year mortgage, while on a 30-year term it will be $1,600. You will pay less interest, if you simply add extra payments to the principal balance periodically. It’s a great way to save money on your home loan; though adding to your monthly principal mortgage takes much discipline.