Save Money & Pay Down Your Mortgage:
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I'd like to suggest a free alternative. Call it the Crusty Columnist Mortgage Reduction Plan.
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Divide your regular monthly payment by 12. Add that amount to your regular monthly payment. Mail your payment.
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Voila! You have just reduced the term of your 30-year mortgage, just like a bi-weekly mortgage payment plan.
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Want to pay your mortgage off faster? Make more extra payments a year. Here's how much time you'll cut off the mortgage payment a year; assuming a 5% interest rate:
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One extra payment cuts your mortgage to 25.25 years, 4.75 years cut. |
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Two extra payments cut your mortgage to 21.9 years. |
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Three extra payments cut your mortgage to 19.4 years. |
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Four extra payments cut your mortgage to 17.4 years. |
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Five extra payments cut your mortgage to 15.8 years. |
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Six extra payments cut your mortgage to 14.6 years. |
