Paying Off Mortgage – Why Does it Feel Like You Owe Money to the Mob?

Article by Robbie Keano

Paying off your mortgage sounds like a statement from the Sopranos. It feels like you paying off the mob every month to leave you alone and live with peace of mind.But in this case, the mob is your bank. Obviously getting a home is one of the best financial decisions you can make. They lend you the money to finance your home but you’d end up spending almost double in what you borrow to pay off your home.Let’s say you bought a home for 0,000 at 6% interest. More than double than what you borrow to pay for your home.And when your home drops in value like now, and you plan to sell your home you may have to take a huge loss on your home. And what happens when you have no option but to move because of your job or your family is growing and you need a bigger place. Not only will you suffer financial loss, but you still have to make the mortgage payments including the excessive mortgage interest payments on your new home.So we may end up with 80% mortgage and figure out ways to borrow 20% as a second line of credit or as a personal loan. So even though your first mortgage could be a fixed interest rate, the second mortgage is variable and as the market moves up and down, you could end up spending even more money over the mortgage life.Paying off mortgage is one of the safest financial investments you can make in yourself especially in these uncertain financial times. Now the reason why most of us cannot pay off our mortgage is that the whole system is designed to work against us. Think about it. So the banks have set the mortgage amortization schedule to work against us.And what if you move to a new home in the first five years?The mortgage interest cycle starts all over again and you’re back to square one. There are some smart accelerated techniques in paying off mortgage. You could be paying extra towards your mortgage each month or using accelerated biweekly mortgage program. Both these methods require you to spend more towards paying off your mortgage.Mortgage Calculator Basics – How Number Crunching Can Help You To Live Mortgage FreeThink twice before you opt for a mortgage that extends fifteen, twenty or even twenty five years. Instead, check a mortgage calculator and shoot for a ten-year mortgage to start. By tightening your belt and cutting back on extras, it is even possible to be mortgage free in five years or less. Using a mortgage calculator, you can determine how much your mortgage payments will be for the life of your loan. If you can’t spare 0 a month, even or will help to pay your house off early. Adding an extra to your payment will save you roughly ,000. Not exactly chump change, is it? In addition, with those extra payments, you’ll knock between 5-6 years off your mortgage. Only have about a month to spare? You’ll still save an amazing ,000 and take off a year on your payments.Finding the extra change is something that most homeowners can do if they cut out going out to dinner every week to once a month. And instead of coveting that new car in the lot on the corner, save to pay off your mortgage first.You can use a mortgage calculator to play with the numbers, and figure out how much extra will save you over the life of your loan. With house appreciation, you may be able to reap even greater benefits if and when you decide to downsize. Even if you can’t be consistent in paying extra every month, try to pay more than the minimum due whenever possible. A mortgage calculator will help you to determine exactly where you stand with your mortgage. If possible, try to refinance to a lower interest rate, if it doesn’t kick up your loan too much. In addition, make sure that your mortgage lender won’t penalize you for early prepayment and find out if they have a cap for the most you can pay over the minimum due amount. Even though you have a mortgage, doesn’t mean it has to own you. You can take charge of your mortgage and live mortgage free with a little discipline, a little patience, and a few extra bucks every month.Read more detailed reviews about mortgage interest write off, interest amortization table, and mortgage interest chart