#1. Early payoff hacks 

There are several early payoff hacks that homeowners can take advantage of:

How it Works

By making one extra payment per year, a homeowner can reduce the amount of interest they will pay over the life of the loan and the duration of the loan. In this example, the monthly payment is $3,160, so by making 1 extra monthly payment of $3,160, the mortgage will be paid off six years ahead of schedule and net over $156,000 in savings.

Tip: By making the extra payment in January, you are hacking the total number of days the mortgage is collected on.

Using the following terms:
Mortgage Term - 30-year Interest Rate - 7% Loan amount - $475,000 Monthly payment - $3,160

Extra Mortgage Loan Payment

#2. EARLY PAYOFF HACKS

How it Works

By increasing the monthly payment to a round number, a borrower can save money on the interest paid over the life of the loan and shorten the duration of the term of the loan. The precise amount of money and time saved will depend on the amount of rounding.

By rounding up a monthly payment of $3,160 to $3,200 every month, $32,483 will be saved in interest and the duration of the loan will decrease by roughly 2 years.

Using the following terms: Mortgage Term - 30-year Interest Rate - 7% Loan amount - $475,000 Monthly payment - $3,160

Round Up Payment

#3. EARLY PAYOFF HACKS

How it Works

Each month, increase the payment by $1. $900 the first month, $901 the second month, and so on. This could reduce the term of the mortgage by eight years.

#4. EARLY PAYOFF HACKS

How it Works

Use unexpected money to help pay down loans. This is the easiest way to pay down debt, including a mortgage more quickly. More than likely this money is not accounted for in a monthly or yearly budget, so it’s easier to use in this scenario. *Beware of prepayment penalties. Each lender may have different rules.

#5. EARLY PAYOFF HACKS

How it Works

By paying monthly, the borrower pays a total of $3,160 per month. With a biweekly plan, they will pay $1,580 every two weeks. By switching to biweekly payments, the borrower will pay $493,804 in interest and will shorten the repayment period to just 24 years. The net savings would be $168,863 and six years off the mortgage.

Using the following terms:Mortgage Term - 30-year Interest Rate - 7% Loan amount - $475,000 Monthly payment - $3,160

Shoot me a text @ 505-350-8184 with 'Preferred Lender' and I will send you contact information for our amazing lender!

Newest Listings Albuquerque

Sort by:
New
9 Sandia Heights Drive Ne, Albuquerque

$1,800,000

9 Sandia Heights Drive Ne, Albuquerque

5 Beds 4 Baths 6,029 SqFt Residential MLS® # 1065440

Keller Williams Realty

New
1002 Madison Street Ne, Albuquerque

$1,050,000

1002 Madison Street Ne, Albuquerque

5 Beds 5 Baths 4,199 SqFt Residential MLS® # 1065691

Keller Williams Realty

New
2205 Via Madrid Court Nw, Albuquerque

$699,900

2205 Via Madrid Court Nw, Albuquerque

4 Beds 2 Baths 2,677 SqFt Residential MLS® # 1064056

Coldwell Banker Legacy

New
5410 Cresswell Road Sw, Albuquerque

$679,000

5410 Cresswell Road Sw, Albuquerque

4 Beds 3 Baths 3,144 SqFt Residential MLS® # 1065672

Lisa Hebenstreit Realty, LLC

New
8608 Sandwater Road Nw, Albuquerque

$530,000

8608 Sandwater Road Nw, Albuquerque

4 Beds 3 Baths 2,480 SqFt Residential MLS® # 1065673

AGM Real Estate Company

New
4528 Acapulco Drive Ne, Albuquerque

$460,000

4528 Acapulco Drive Ne, Albuquerque

3 Beds 2 Baths 1,951 SqFt Residential MLS® # 1065636

Berkshire Hathaway NM Prop

New
2120 Violet Street Sw, Albuquerque

$440,000

2120 Violet Street Sw, Albuquerque

4 Beds 2 Baths 1,893 SqFt Residential MLS® # 1065655

NM Home Masters, LLC

New
3300 Tennessee Street Ne, Albuquerque

$440,000

3300 Tennessee Street Ne, Albuquerque

4 Beds 3 Baths 2,023 SqFt Residential MLS® # 1065662

Huynh Win Real Estate Group

New
6327 Driscoll Avenue Ne, Albuquerque

$430,000

6327 Driscoll Avenue Ne, Albuquerque

3 Beds 2 Baths 1,670 SqFt Residential MLS® # 1065678

Criel and Associates, LLC

New
3339 Central Avenue Ne 310, Albuquerque

$429,000

3339 Central Avenue Ne 310, Albuquerque

2 Beds 3 Baths 1,700 SqFt Residential MLS® # 1065647

Simply Real Estate

New
9515 Akutan Court Nw, Albuquerque

$399,000

9515 Akutan Court Nw, Albuquerque

4 Beds 3 Baths 3,005 SqFt Residential MLS® # 1065659

Realty One of New Mexico

New
7701 Calhoun Drive Ne, Albuquerque

$389,000

7701 Calhoun Drive Ne, Albuquerque

3 Beds 2 Baths 1,484 SqFt Residential MLS® # 1064876

Keller Williams Realty

New
604 Red Bluff Avenue Sw, Albuquerque

$339,000

604 Red Bluff Avenue Sw, Albuquerque

3 Beds 3 Baths 1,984 SqFt Residential MLS® # 1065674

Realty One of New Mexico

New
2427 Pomelo Place Nw, Albuquerque

$289,900

2427 Pomelo Place Nw, Albuquerque

3 Beds 2 Baths 1,192 SqFt Residential MLS® # 1065684

The Maez Group

New
4 Whittier Street Se, Albuquerque

$285,000

4 Whittier Street Se, Albuquerque

4 Beds 2 Baths 1,563 SqFt Residential MLS® # 1065677

Real Broker

New
401 Jane Street Ne, Albuquerque

$267,900

401 Jane Street Ne, Albuquerque

3 Beds 2 Baths 1,088 SqFt Residential MLS® # 1065681

Keller Williams Realty

New
4925 Osuna Place Ne, Albuquerque

$265,000

4925 Osuna Place Ne, Albuquerque

2 Beds 2 Baths 1,224 SqFt Residential MLS® # 1065675

Coldwell Banker Legacy

New
4608 Spring Valley Circle Sw, Albuquerque

$259,500

4608 Spring Valley Circle Sw, Albuquerque

3 Beds 2 Baths 1,110 SqFt Residential MLS® # 1065670

Berkshire Hathaway NM Prop

New
1447 Mora Road Sw, Albuquerque

$200,000

1447 Mora Road Sw, Albuquerque

2 Beds 1 Bath 1,052 SqFt Residential MLS® # 1064084

Realty One of New Mexico

CONTACT US (505) 886-1432

Provide a valid email address.
Newsletter consent

Posted by NMWelcomeHome Team Associates (505) 886-1432 on
Email Send a link to post via Email

Leave A Comment

e.g. yourwebsitename.com
Please note that your email address is kept private upon posting.