From TexAgs Sponsor, Aggieland Credit Union:

Sure, paying a mortgage is a whole lot better than paying rent, but most people would prefer not to have to pay either one. And the closer you are to the day your loan is paid off, the closer you are to being able to channel those funds into additional investments.

So is there really an easy way to pay your home loan off early? Actually, there is.

What if you made 13, meaning one extra payment a year? It would cut approximately 7 years off your 30-year mortgage.

But an additional payment is a stretch, isn't it? After all, where will you get the extra money?

Actually, it's not quite that difficult. Because there are 52 weeks in a year, if you made half a mortgage payment every two weeks, you'd end up with 13 whole payments.

The concept of a bi-weekly mortgage isn't a new one, but we want to make sure you know about it so you can take full advantage of this great tool.

It's your money. Might as well keep as much of it as you can in your own pocket.

Learn more about your home loan options with Aggieland Credit Union!


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This is not an offer to extend consumer credit as defined by Section 1026.2 of Regulation Z. Home loans are provided by partnership with CU Members Mortgage a division of Colonial Savings, F.A. NMLS#401285.a

This is cool and all.... But tell me how to cut months off of my rent instead ... Thanks

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This is cool and all.... But tell me how to cut months off of my rent instead ... Thanks

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Buy a house.

Finally. Some sound advice from a lender.

I would add:

If you have any other debt WHATSOEVER, pay that off before you start putting extra money on your house.

9 times out of 10, the other debt isn't on something that will retain it's value like a house. And unless you financed your house in 1979, the interest you are paying on your other debt is higher than your mortgage.

Yeah, I guess cutting 7 years off a 30 year Mortgage is not too shabby, but cutting 15 yrs off a 30 year mortgage would certainly be better. For all you out there thinking of buying a home, you should seriously consider a 15 yr mortgage over a 30 year mortgage for your personal residence. Most realtors and mortgage brokers I've dealt with argue that you should get the 30 yr and just pay extra each month enough to cut it to a 15 yr and you should do that so that in the event you get into financial stress you can revert back to the 30 year payment schedule. I think they tell you this as it is easier for you to qualify for your loan and thus ensuring they get their commission check.
But the facts are very few people who set up a 30 year mortgage are discipline enough to pay it off in 15yrs. That advice looks good on paper but rarely is successful when the rubber meets the road. The average mortgage last approximately 5 years and if that is true then it is the banks who make out as in a 30 yr mortgage you pay down very little principal in 5 years. People who use 30 year mortgages are either 1st time buyers (not fully aware of the advantages of a 15 year mortgage), those who are just about buying as much house as a mortgage broker tells you that you can afford, or people who have alway done it that way (30yr mortgage).
If you have little to no debt; certainly no credit card debt, you have an emergency cash reserve, you live below your means, a steady job, and are willing to buy a little less house than you could buy using a 30 year mortgage, then you are an excellent candidate for a 15 year mortgage. Go find someone who has utilized a 15 year mortgage and simply asked them if they could do it over would they decide on a 30 year mortgage instead. I challenge you to find someone who would tell you they like the 30 over the 15. Again, find someone who has had both and you will usually find someone who had a 30 and refinanced into a 15 or first had a 30 and then bought the second time around with a 15. I challenge you to find someone who has had a 15 and latter utilized a 30 for their personal residence (chances are you won't). It is simply because of the overwhelming advantages of a 15 vs 30 year mortgage. If you can pay on a 15 year mortgage for 5 years then you are in very little danger of losing your home to foreclosure, simply because you should have enough equity built up that in most housing markets including a down market you will be able to sell without bring money to the closing. This can't be said for a 30 year mortgage as some down turns can easily cause the loss of home value to exceed any equity you might gain in a 30 year mortgage in 5 years. Also for you rooks out there, just because you get a 15 yr mortgage over a 30 year doesn't mean your payments are going to be double. They usually end up somewhere in the neighborhood of about 20% more. If on the other hand you have a lot of consumer debt (credit card, auto, and student loan debt) then you might want to hold off and get your debt reduced before you tackle a home purchase. If you find yourself living paycheck to paycheck then you want to change that predicament prior to taking on additional financial responsibility. Good Luck.

Read this as "How to cut years off your marriage"

Someone's been listening to Dave Ramsey......

Smoke and drink heavy and you'll cut years off caring about the mortgage.

This is more beneficial if the principle and interest are applied every two weeks. Most lenders hold the first payment until the second half is made. And the p&i need to be recalculated every time a payment is made, avoiding the 'scheduled interest' concept.