Paying off your Mortgage Faster

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I just read another great article in The Globe and Mail written by David Isrealson on the three quickest ways to pay your mortgage faster, and it gives some great tips on ways to get your mortgage paid off faster.

“… Speeding up mortgage payment doesn’t make sense for everyone in every circumstance. In today’s low-interest environment, with rates unlikely to rise drastically for a while, a mortgage is among the lowest-cost debt, compared with the cost of, say, car payments or credit-card debt. Most importantly, stay informed about your mortgage, Mr. Robinson says. ‘For most people, it’s the biggest debt you’ll ever have. Be financially literate.’

Biweekly payments

For example, instead of making payments once a month, you can ask your mortgage holder to accept biweekly payments, dividing the monthly amount in half.

Round up

Another really easy and relatively painless way to make faster payments is to round up your regular payment by a small amount, whether it is monthly or biweekly. For example, if you normally pay $575 every two weeks, consider bumping it up to $600.

Extra payments

A third way to speed up your mortgage payment is to put in extra money when it comes your way, for example through a tax refund, inheritance or work bonus.”

To read the rest of the article, please click here.

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