How to Pay Off a Mortgage Loan Faster
- 1). Pay your mortgage only once per month.
The reason for this is because you need to use the payment coupon whenever you pay the mortgage for more than the minimum payment. - 2). When making your mortage payment, make sure you use the payment coupon and specify that extra amounts are to be applied towards the principal.
If you do not do that, the bank is free to apply it to a later payment and hold the funds in suspense until the following month. During this time, your mortage balance will continue to accrue interest as if you never made the additional principal payment. - 3). If you make an online payment, pay only the minimum payment. Then use the payment coupon by specifying that you want to pay down the principal, and pay with a separate check over the mail if you want to pay down extra principal.
Just like before, you need to specify that extra funds pay down principal, otherwise the bank will hold it over to subsequent months indefinitely until your monthly payment is short.
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