Four ways to pay off your mortgage early

Congratulations, you finally bought your first home. You got a great rate on a thirty year fixed rate mortgage, so your monthly payments are affordable. But a look at your amortization schedule gives you a shock - over thirty years, you’ll pay two hundred thousand bucks in interest as you pay for your house. There MUST be a better way!

Here to explore alternatives is Real Estate Expert John Adams.

Question:  John, two hundred thousand bucks in INTEREST seems like a lot of money - what’s the scoop?

Adams: It’s all mathematics.  The more you borrow and the longer you take to pay it back, and the more its gonna cost.  There’s no magic here.

Q:  But why does it seem so expensive?

A:  Because you’re paying interest.  If you really want to save money, just wait until you have the cash in the bank, and then write a check for the home purchase.

Q:  If we had to do that, most of us couldn't afford to buy a house for many years, if ever!

A:  I agree!  So you are better off getting a loan and buying your house now when you need it!

Q:  But are there ways to pay off the loan early?

A: Yes, there are.

Q:  So, your lender will accept any of these options if you decide to use them?

A:  Yes.  You may need to mark the additional payments as PRINCIPAL, but the lender MUST accept them.

Q:  John, what’s the bottom line?

A:  If you want to pay off your loan early, you are always welcome to do so. It’s up to YOU to decide if that course of action is right for you!