Double Up Payments
Another option is to double up on mortgage payments. This means making two payments in one month, essentially making an extra payment every year.
This can help reduce the amortization period of the mortgage …MASSIVELY…and save a significant amount of interest over the life of the mortgage.
Finally, borrowers can opt for accelerated payments. This means making payments more frequently than the regular monthly payments.
For example, instead of making monthly payments, borrowers can make bi-weekly or weekly payments.
This helps to reduce the principal balance more quickly, which can help to save money on interest over the life of the mortgage. Typically will knock 4-5 years off your mortgage amortization.
It’s important to note that pre-payment privileges and terms may vary depending on the lender and mortgage product.
It’s important to review the terms and conditions of your mortgage agreement to understand the pre-payment privileges available to you and any associated fees or restrictions.
Conclusions and Further Thoughts
SIMPLE…These prepayment options can KNOCK YEARS OFF YOUR LOAN.
PS – One of my hobbies is blogging about mortgages, debt and government policy. During the day I’m a MORTGAGE BROKER in Kelowna, BC!
Check out the Huber Mortgage Home Buyers Guide HERE