Pay down that mortgage faster

Tightwad and her hubs have recently figured out that if we up our bi-weekly mortgage payments by $40, we will take 10 years off our mortgage! What a no brainer! Now, this is not an option for everyone, but letting go of a few wants throughout the month can really add up. It's easy to let go of the extras when you see the pay off at the end; shorter lending term and a bundle saved in interest. 

Here are some Tightwad tips to reduce your mortgage:

Go bi-weekly Paying the mortgage every other week can shave three or four years off your mortgage, and save you a bundle in interest.

Increase your payments This works if you expect your salary to rise over time. Every paying $10 more per payment will go a long way to helping reduce the principle.

Pay a lump sum Many mortgages give you the option of paying a certain percentage of your mortgage annually to put towards the principle. Even if you manage $500 extra a year to pay down the mortgage, you will still see substantial savings in the interest department over the life of the mortgage. 

Remember: Every $1.00 you throw at your mortgage today will be at least $1.50 you won't have to pay down the road. The earlier you can boost the payments, the more muscle you can put behind your money.