Early Pay-off Hack: Pay bi-monthly instead of monthly
Mortgage Hack #3
Suppose the borrower pays a total of $3,160 per month by making monthly payments. In a biweekly payment schedule, they will pay $1,580 twice a month. The borrower will reduce the repayment period and pay $493,804 in interest by moving to a biweekly installment limiting the time frame to 24 years. The mortgage would be paid off in six years plus a net savings of $168,863.
Mortgage Term – 30-year Loan Amount - $475,000 Interest Rate – 7% Monthly Payment - $3,160
Reference: 2022 Keller Mortgage LLC