Mortgage Hack: How to Save Money & Shave Years Off Your Loan

save hundreds and thousands of dollars in interest

Are you looking to save hundreds or thousands of dollars and shave years off of your mortgage loan? Brent provides essential insight for all homebuyers to be aware of.

More of a reader? Catch the video transcript below!

This whole video is a pro tip. This is probably THE simplest thing you can do to save money and shave years off your mortgage loan.

Ready for it?

Make bi-weekly mortgage payments.

Most homeowners make one payment on their mortgages every month. If you make one payment a month, that’s 12 payments a year.

However, most people get paid every two weeks.

So, why not pay half of your mortgage every two weeks on payday?

Think about it this way. There are 52 weeks in a year. If you get paid biweekly, that’s 26 paychecks. If you pay half your mortgage every two weeks, that’s 26 half payments.

This equals 13 full payments per year, so you’re making one EXTRA mortgage payment every year.

Does one extra mortgage payment make that big of a difference?

The answer is YES. Let’s run some numbers.

If you do a biweekly payment structure, you’ll shave 6 years and 2 months off a 30-year mortgage term. More than you may have thought, right?!

Get this: say your monthly payment is $4,669.91. Over the life of your loan, you’d pay $961.166.27 in interest (for the sake of this example).

If you’re on a biweekly schedule, that evens out to $5,064.37 each month. That would lower the amount of interest you’d pay to $726,338.05.

That’s $234,828.21 in interest savings over the life of your loan!

Here are a couple more easy options for paying off your loan faster and saving money.

Simply pay a little bit extra on your mortgage every month.

OR, if you get a Holiday bonus at work, go ahead and use a chunk of that to make an extra mortgage payment!

So easy. And your future self will thank you.

That’s going to do it for me today! Feel free to check out my YouTube channel for more hacks and insider info!

Brent Edwards (aka Brent the Broker) is a residential real estate agent and Realtor in San Diego, CA who helps clients buy and sell homes in San Diego, California and all surrounding areas. Brent is a highly-recommended Realtor in San Diego by family, friends and past clients. Call Brent today at 619-550-8070 if you have any questions about real estate in San Diego or you'd like to buy or sell a home.