Tips To Pay Off Your Mortgage Fast - Part 2

Continued from Part 1. Here are some more tips that will help you to pay off your mortgage fast.

1. Round up your payments! That's right, you can save a good chunk of money by rounding up a few dollars. I had a mortgage payment of $710.88 which I rounded to $725. The extra $14.12 per payment is now going directly to the principal. This will save you a few thousand bucks if you start this early on!
   
2. Keep your payments the same if mortgage rates fall. If you are accustomed to paying $700 bi-weekly and you new mortgage rate lowers your payments to $675, keep paying the $700. Once again, the extra $25 each payment will go directly to the principal saving you a bunch in interest.
   
3. Increase your payment if your income increases. If you receive a raise each year, I would suggest increasing your mortgage payment by that amount, unless you require the money elsewhere. This will have the same affect as the above scenarios. This year I received a raise that was equivalent to just over $2000. I divided this by 26 (this is the # of payments I make per year as I pay bi-weekly) and increased each payment by $79.18. This will shave a chunk off my payments over the course of my mortgage long run.

Stay tuned for more tips in the coming days as I will be posting part 3.