{"id":58968,"date":"2023-02-27T04:38:31","date_gmt":"2023-02-27T08:38:31","guid":{"rendered":"https:\/\/www.iwillteachyoutoberich.com\/?p=58968"},"modified":"2025-04-03T11:09:03","modified_gmt":"2025-04-03T15:09:03","slug":"pay-off-mortgage-early","status":"publish","type":"post","link":"https:\/\/www.iwillteachyoutoberich.com\/pay-off-mortgage-early\/","title":{"rendered":"Pay off mortgage early: How to pay $70,000+ less on your loan"},"content":{"rendered":"\t\t
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Paying off your mortgage early is a great example of a Big Win.<\/p>\n

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Not only would it take years off of your loan term, you also stand to save a TON\u00a0of money in the long run.<\/p>\n

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How much money? For a $300K house,<\/strong>\u00a0you can pay upwards to $70,000 less on your mortgage by paying it off early.<\/strong><\/p>\n

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Not only that but you can benefit from it psychologically too. By paying off your mortgage early, you won\u2019t have to worry about a huge chunk of your paycheck being accounted for already when you get it \u2014 allowing you to invest and spend on other things you love.<\/p>\n

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That\u2019s why I want to show you good systems to help pay your mortgage off early …<\/p>\n

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\u2026 as well as show you why you might not WANT to pay off your mortgage early.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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How to pay off mortgage early<\/h2>\n

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Below are three ways you can pay off your mortgage early.<\/p>\n

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Not all of the methods below are going to work for everyone. The important thing is to understand the concepts I\u2019m introducing to you so you know your options.<\/p>\n

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1. Pay bi-weekly<\/h3>\n

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Buying a house can come with a LOT of financial pitfalls<\/u>. One of the biggest is paying your mortgage longer than you actually need to.\u00a0<\/p>\n

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To avoid that, you can switch to a bi-weekly <\/em>payment plan for your mortgage.<\/p>\n

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Here\u2019s how this works: Rather than pay off your mortgage once a month, like most home borrowers do, you\u2019re going to pay it\u00a0biweekly<\/em>\u00a0instead.<\/p>\n

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By paying your mortgage bi-weekly, you\u2019re actually taking several years off of your mortgage payments.<\/p>\n

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Let\u2019s run a scenario using two banks:<\/p>\n

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  1. U.S. Big Bank. <\/strong>They offer typical monthly mortgages payments at 12 payments a year.<\/li>\n
  2. First National Bank of Ramit (FNBR).<\/strong>\u00a0FNBR allows you to make bi-weekly payments with 26 payments a year (52 \/ 2 = 26).\u00a0<\/li>\n<\/ol>\n

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    Here\u2019s what a $300,000 30-year fixed-rate mortgage at 6% APR looks like with each bank.<\/p>\n

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    U.S. Big Bank: <\/strong>Each year you\u2019ll make 12 monthly payments of $1,798.65. Over 30 years you\u2019ll end up paying $347,514.57 in interest.<\/p>\n

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    First National Bank of Ramit: <\/strong>With 26 payments of $899.38, you\u2019ll be able to take off a few years from your mortgage AND save almost $71,000 in interest payments.<\/p>\n

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    That\u2019s like 18,000 lattes<\/u>\u00a0or one every day for the next 50 years.<\/p>\n

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    Luckily for you, many banks offer bi-weekly plans just like FNBR. The best part? They automate their system so they can painlessly take money from your checking account each week.<\/p>\n

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    Some of these banks might try to nickel-and-dime you with a $4 fee every month \u2014 but don\u2019t worry. We have systems to help you negotiate<\/u>\u00a0out of those fees.<\/p>\n

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    2. Refinance your mortgage<\/h3>\n

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    Refinancing<\/a> is when you get an entirely new mortgage \u2014 with different terms.<\/p>\n

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    It\u2019s typically done for a number of reasons, including:<\/p>\n

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