Curious how you can cut your mortgage in half? You should be, if you have a mortgage of course.
During a quick discussion with Dr. Singham (we have never met) at the Terminal City Club, I taught her how to cut her mortgage in half by simply not over leveraging yourself. All you have to do it use some of your prepayment options. Using a 25 year amortization, 5 year fixed term (rate doesn’t matter), use a bi-weekly accelerated payment and increase your payment by 20%. This will now off 12 year off your mortgage, almost cutting it in half. Keep in mind that you can still put balloon payments up to 20% of the original mortgage value each year. This gives you the potential to pay off your mortgage in less than 5 years without penalty.

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