Paying one additional mortgage payment each year, whether in a lump sum or monthly increments, can lower a 25-year loan down to 15 years.  If you pay more than one extra payment, the number of years will decrease even more.  Since this additional payment will be applied only to the principal and not the interest, you end up saving thousands and thousands of pounds on the Total Amount Repayable

This is a good idea if…

You have the spare money and a flexible rate mortgage. A mortgage is by far the biggest financial burden most people take on in their lifetime (apart from taxes!) and if you can reduce the time it takes to pay this down, you will be far better off in the long run. And if you are a long term planner with good financial discipline then this would be a good idea..

However…

In the current financial climate it might be a better idea to pay off any debt that carries a higher interest, like car loans, home improvement loans and credit cards and store cards. The store cards usually have the highest interest rate so you may want to pay those off first, then the credit cards and so on.

Paying off your credit cards also means that you would be able to use the money available on your credit card should the need arise, where as most mortgage products would not let you have your money back.  Having an available line of credit (lots of money available on your credit card) is also good should you suddenly find yourself jobless.

If you pay more than one extra payment, the number of years will decrease even more. Since this additional payment will be applied only to the principal and not the interest, you end up saving thousands and thousands of pounds on the Total Amount Repayable.”

Only do this if you can afford it. If you’re already short of cash, paying off your mortgage faster doesn’t make sense.

Do your budget planning and make sure you can handle the reduced disposable income before you go ahead.

If you have other debts that charge a higher interest, you are going to be better off by paying those off first.

At the moment I am snowballing an overdraft and 2 credit cards and I am not doing the 13th month until those 3 are cleared up. I use my 13th mortgage payment to actually pay these off faster. I use the monthly increment and add it to the snowball payment.

If you have all the money you need, then this is a great money saving tip.

The first thing that you have to make sure you know is that a mortgage is going to be a loan that you can take out to pay for your home. The mortgage will allow you to buy a home because you take out a loan and use the loan money to pay for your home. This way you can be sure that you are giving yourself every chance to be a homeowner. Once you have figured out a little bit about the mortgage process, it is time to choose which one of the mortgages is best for you. First of all, you want to be sure that you are choosing one of the mortgages that can full pay for your property. Therefore, you first must know how expensive the property is that you are looking at purchasing. Then, you want to be sure that you choose a mortgage that can fit this amount.

Then, you want to be sure that the mortgage has the right kind of interest rate for you. You also want to be sure that you will be able to make the right types of monthly payments when you are dealing with your mortgage, so be sure that these are all covered as well as you can. For more information on how to save money on travel thus allowing you to pay off your mortgage earlier, visit http://www.featuredholidays.co.uk