Ways to pay down your mortgage

Most people are not in a hurry to pay off their mortgage because it is the largest debt and the interest on your mortgage on your principle residence is tax deductible. However, many of us get a level of comfort by paying off the mortgage at least before retirement.

Make an extra payment at least once every year: This will shorten your 30 year mortgage to 26 years. In order to get the maximum benefit of your extra payment, make it in January each year. It will not only help you to shorten the loan period but also help you to reduce interest by thousands of dollars over the life of the loan.

Round up your monthly payment: It will not only reduce the number of years it takes to pay off your mortgage it will also save you money on interest payments. Round it up to next round dollar amount say additional $100 to $200.

Refinance your mortgage to a lower interest rate: Start with your current mortgage lender. They may be able to lower your interest rate keeping the same term of the loan. It will also help you to improve your loan to debt ratio that will help you with other interest rates such as your credit cards.