If you’re a homeowner with a mortgage, paying off your mortgage early may be an excellent way to dodge interest over the years, saving you thousands over the length of your mortgage.However, before you begin prepaying, talk to your lender to see if there’s a prepayment penalty on your loan, as well as a financial advisor to see if your additional payments could accrue more in an investment fund.
If prepaying your mortgage seems like a smart move, take these steps to get started.
Bump up your monthly payment. An extra few hundred dollars a month can seriously decrease your overall interest over the length of your loan. Or, if you get a pay raise, include that extra income percentage into your monthly payment.