How To Pay Off Your 30 Year Mortgage In 12 Years?

By Mark J. Orr, CFP

Is the thought of making 360 monthly mortgage payments getting the best of you? Will the feeling of helplessness

just not let up?

Are you frustrated out of your mind when you think about all of the years you’ll be making those huge mortgage payments and all of the $100,000’s of interest charges that lie BEFORE YOU?

Have you tried everything from bi-weekly mortgage schemes, answering every internet refinance advertisement, sending the bank another $20 with each monthly payment, etc. to payoff your mortgage early — with little or no results?

And if you are like most Americans, you only stay in your home for an average of 5-7 years before you move to a new home. And then you start the thirty year mortgage process all over AGAIN!

How can you ever get financially ahead and pay off your mortgage if you keep beginning the process over and over again?

Well, what if your mortgage lender called you today and said something like…

“if you qualify for our new mortgage acceleration program, we would like to cut up to 18-22 years off your mortgage term. And we’re not going to change anything at all with your current payments”…

What would you say to an offer like that?

Is there even one homeowner in America that would honestly say “NO” to that program?

That’s right.

There is an easy way to payoff your mortgage in as little as 12 years or even LESS. With no refinancing your current mortgage and without sending your lender larger or more frequent payments.

That is true whatever type of mortgage that you have — even if it is a fixed or an adjustable mortgage rate, 30 or even 40 years long, whether your mortgage balance is only $100,000 or over one million. It doesn’t matter.

And if you have credit card debt that makes you feel like you are drowning in high interest rates that result in huge monthly minimum payments, you can solve that problem as well.

In fact, I would suggest getting rid of that debt before starting to payoff your mortgage debt since personal credit card debt is non deductible off your income taxes.

I’m often asked questions like, are you sure that I don’t have to get a NEW mortgage? Do I have higher monthly expenses so that I have to change my current lifestyle? Am I ever locked into anything?

The answer to all of those questions is NO!

Well why hasn’t my bank told me how I can pay off my mortgage in less than half the time it takes your neighbors?

Let me ask you? Why would they? Why would they want to stop getting 30 years of interest income (your payments) and just settle for 7-14 years of payments? It is not to the lender’s benefit to tell you how get become debt free!

Did you know that with a 30 year mortgage at 7%, that about 80% of all your mortgage payments during the first 5 years of the loan are interest.

Did you know that it isn’t until some point in the 20th year that even half of your monthly mortgage payment goes towards paying down you principle (your loan balance)?

Let me give you an example of a typical client:

Mr. and Mrs. Smith earn $3,000 combined every two weeks in take-home pay (after taxes and benefits). Their normal monthly bills (excluding the mortgage) run $3,000 each month.

They live in a home worth $250,000 with a $200,000 current mortgage balance with 25 years remaining on the loan. Their loan interest rate is 6.25% with a monthly payment of $1,539 (excluding taxes and insurance).

With this set of assumptions, how long would it take the Smiths to FULLY pay off their mortgage with this financial strategy?

Just under 10 years!!

How much interest would the Smiths save over their 30 year original mortgage plan without using this strategy?

$261,700

So they saved over a quarter of a million dollars in interest and saved years of writing and mailing those hefty monthly mortgage checks! After paying off their mortgage, they get to keep that $1,539 payment every month and use if for their kid’s college or to prepare for retirement, travel or whatever they want!

All with no re-financing and without sending larger or more frequent payments to the lender. They were never locked into anything and retained complete flexibility.

And your interest savings could be much much more — especially if you have a jumbo mortgage or have a higher interest rate.

There’s an old saying that those who understand interest, collect it while those who don’t… pay it!

To learn more about how you can pay off your mortgage quicker than you ever thought possible, please visit the website listed in the author BIO box.

About the Author: Mark J. Orr is a Certified Financial Planner serving clients throughout the USA. To learn more about how to pay off your own mortgage in less than half the time it will take your neighbors please visit: CutYearsOffMyMortgage.com

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