Why Use an Accelerated Payoff Strategy?
An accelerated payoff strategy involves making payments beyond the minimum amount required by your lender. These extra payments are typically applied directly to the principal balance of the loan.
By reducing the principal faster, you decrease the amount of interest that accrues each month, resulting in substantial savings over the life of the loan.
Accelerating Your Payoff
There are several ways to accelerate your loan payoff, including making extra monthly payments, making a lump-sum payment whenever you have extra cash, or switching to a bi-weekly payment schedule.
Even an extra $50 or $100 per month can shave years off a long-term loan like a mortgage. Use this calculator to see how much you could save by increasing your payments today.