A Pain Free Way to Pay Your Loan Early

The Swami knows one thing for sure -- Almost no one likes to make their mortgage payment. It Stinks! For most people, the mortgage payment is their single biggest monthly expense. So much of your hard earned income goes to paying on the house that very little is left over for the fun stuff in life.

But the reality is that we have to make these payments like it or not. So why not pay the darn thing off as fast as you can. Thirty years is long time. Just think 30 years ago, Jimmy Carter was president and Saturday Night Fever is was a smash hit at the box office. By the Way, The Swami was too young to disco at the time. Anyway, who wants to wait that long? The Swami sure doesn't.

So here is the secret to knocking seven or eight years (and tens of thousands of dollars in interest) or more from your thirty year mortgage: Instead of paying your mortgage once a month, make 1/2 of your mortgage payment every two weeks. Isn't that easy? I know, I know you are wondering what I'm talking about.

Here's how it works: Because you are making a half payment every other week, you actually end up making one extra payment per year (26 bi-weeks x 1/2 payment). That one extra payment goes toward your principle. By doing so you end up shaving seven years off of your mortgage. Add a little extra to those bi-weekly payments and you take even more time off of your loan.

Check out this bi-weekly mortgage calculator to see for yourself. Just so you know, The Swami employs this system on his own mortgage because the Swami is not fond of making mortgage payments either.

The easiest and most painless way to employ bi-weekly payments is by setting up an automatic withdrawal from your checking account. This way you don't even have to think about it. Most mortgage lenders offer such plans for a very nominal fee. If they don't just save a little extra every month and make an extra payment toward principle at the end of the year. You will accomplish the same thing.

Now, here are some of today's best priced wholesale lending rates.

15 days 30 days
5.375 1.625 1.687
5.500 0.996 1.058

5.625 0.430 0.492

5.750 (0.090) (0.027)

5.875 (0.556) (0.493)

6.000 (0.905) (0.843)

6.125 (1.355) (1.293) (

6.250 (1.744) (1.681)

6.375 (2.069) (2.007)
6.500 (2.230) (2.167)

6.625 (2.550) (2.487)
6.750 (2.809) (2.746)

6.875 (3.013) (2.950)

7.000 (2.966) (2.903)