How To Pay Off A Mortgage - Home Loan Help

Are you hoping to pay off your mortgage? Yet the greatest hindrance to owning your home free and clear is found in your 30 year fixed rate amortization schedule. In short, it takes years to reduce the principal balance of your home loan.

On top of that, each time you refinance, you start over with a new mortgage amortization. But just for a moment, imagine owing nothing on your house as did Frank McKinney "Kin" Hubbard, America's favorite humorist from the 20th century.

"There are few things in this life that equal the sensation of being paid up."

How is this possible? As you read the following article, you are about to discover how to pay off your mortgage, even saving thousands of dollars at the same time. What are we waiting for? Let's begin!

Who Wants To Pay Off A Mortgage Fast - The 30 Year Fixed Rate Alternative

Everyone wants to pay off a mortgage fast. But are you thinking this dream seems impossible? Think again!

I'll never forget how my jaw dropped when we bought our first house. Noticing the year of final mortgage payments, I asked my husband...

"Honey, are you taking into account how old we'll be by the time we pay off our mortgage? How will we retire?"

And when the loan officer interjected...

"No worries, the loan is amortized."

...it did little to calm my fears!

Years later I became a loan officer eventually opening a mortgage company. My first time buyers were amused that my favorite oxymoron was Getting a Mortgage to Own a Home!

Amortization Schedule

A simple definition of an amortized mortgage is the gradual reduction of the mortgage balance by means of scheduled payments, beginning with more interest paid than principal in the earlier years. Both mortgage and amortization come from the Latin root "mort" meaning death.

To summarize for my borrowers, I'd explain, "Until death do we part with our mortgage." More to the point, "Until death do we owe."

But for those who want to be debt free, what is the alternative to the oxymoron of owning a house by means of borrowing?

Consider This - 15 Year Fixed Rate Mortgage

After the first 15 years of mortgage installments on a 30 year fixed rate mortgage of $200,000 at 6%, a homeowner still owes $142,097 of principal.

In fact by the time the $2000,000 amortized mortgage is paid in full, a homeowner watches $431,671 leave their pocket. Now you're beginning to understand why a mortgage for a homeowner is an oxymoron, right?

Wouldn't you agree there has to be a better way to pay off a mortgage? Well there is! Meet the solution, the 15 year fixed rate mortgage.

This secret shared by experienced homeowners actually turns the dream of owning a home free and clear into reality.

Here's A Good Example

Assume you borrow $200,000 using a 15 year fixed rate mortgage. Speed up the clock just 15 years. You own your home free and clear!

Had you chosen a 30 year mortgage, you'd still owe $142,097 of principal and have an additional $74,000 left to pay in interest over the next 15 years.

A 30 year fixed rate would cost you approximately $232,000 in interest alone.

With a 15 year amortization, you save nearly $138,000 in interest payments and become free from your home loan in half the time.

In addition to paying off your house fast, another advantage of the 15 year amortization is a lower interest rate compare to its 30 year counterpart. This lower rate, in addition to the 15 year term, eliminates thousands of dollars in interest over the life of the mortgage. And after 180 payments, you own your house free and clear.

Now wouldn't you agree, this is how a homeowner can pay off a mortgage fast! And that's no oxymoron.

If you enjoyed Pay Off A Mortgage, you will also like A Simple Plan To Pay Off Your House.

Take Your Knowledge To The Next Level

Robert Kiyosaki says...

"We go to school to learn to work hard for money. But I write Books and create Products that teach people how to have Money Work Hard For Them."

Visit my collection of Financial and Real Estate Ebooks to download to your Amazon Kindle or other ebook Readers. Available in hard cover and paperback too.

Prime Real Estate Articles Tip No.30
Home Mortgage Application | Co-Borrower Considerations

Your friend asks you to co-borrower so he can buy a house but could this favor haunt your future?

Learn the facts on co-borrowing because what can truly help your friend qualify for a mortgage can potentially hinder your chances of ever getting another home loan.

When you co-borrow, it is more than a testimonial to your friend's character. You are actually assuming responsibility for his mortgage. So if your buddy overlooks making his mortgage payment on time, your credit history pays for his mistake.

If that is not enough to make you think twice, his payment can be added to your debt ratios the next time you apply for a home mortgage.

Now this is not intended to discourage you from co-borrowing. In fact, co-borrowing is still a great way to help a first time home buyer break into the housing market.

But next time you are asked, remember co-borrowing is more than giving a reference.

Understanding Mortgage Applications

Take the guided tour with Kate's unique tips for filling out your home mortgage application...

Coborrower | Responsibility | Loan Type | Appraisal | Rates/Terms | Address/Units | Legal Description | Year Built | Purpose | Usage | Construction | Refinance | Title 1 | Title 2 | Fee Simple | Down Payment | Name | SS Number | Phone Number | DOB/Education | Address | Employment | Income | Housing Expense | Assets | Liabilities | Real Estate Schedule | Transaction Details | Declarations | Acknowledgement | Government Monitoring | Application Interview

View FNMA 1003

A Gold Mine Of Homeowner Help From Ask Kate

How To Buy A House - Tips On Buying A Home

Refi Tips - Refinancing Your Mortgage

How To Get A Mortgage - Home Loan Help

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The calculations in this article are estimated and not, nor are they intended to be, a substitute for financial, real estate or legal advice. You should consult a lender, accountant, or trusted advisor such as an attorney for exact numbers and outcome. Interest rates vary and could determine different results.