Consider a 15-year mortgage for saving on interest
Today's mortgage rates offer more borrowers an opportunity to opt for a shorter term mortgage. A 15-year mortgage repayment term can potentially save thousands over a 30-year FRM mortgage with the same balance and mortgage rate, although 15-year FRM loans typically carry lower mortgage rates than equivalent 30-year FRM loans.
Using mortgage calculators can estimate possible savings, but the results provided are based on FRM loans.
How you can pay off your 30-year mortgage rate quickly
It's also possible to prepay a 30-year mortgage by paying extra each month, or applying larger lump sums against your mortgage loan balance.
Here are some tips for paying off a 30-year mortgage loan faster:
- Verify that your mortgage doesn't carry a pre-payment penalty. Some home loans include conditions prohibiting paying off the loan before a specified date.
- Use an amortization calculator for achieving your early payoff goal. Let's say you want to retire in 10 years mortgage free, but your mortgage has 15 years left. Using mortgage comparison calculators can help with determining how much more you would have to pay each month to retire your mortgage by a specific date.
- Budget for paying additional principal payments (also called principal curtailments) each month. Paying an extra $50 or $100 a month toward your mortgage can save substantial amounts in interest.
- Specify that additional amounts paid are to be applied toward your mortgage balance, otherwise the extra may just go towards regular monthly o interest payments
Our live database of current mortgage rates can help you find the best mortgage rates in your area.