Prepay mortgage, save big

Smart strategies to shorten loan term

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

Some homeowners expect to stay in their houses or condos "forever" so they want to pay off their mortgage as fast as possible. If you are 100 percent certain you want to pay off your home loan as fast as possible, here are three helpful suggestions: 1. Don't get or convert to a biweekly mortgage. The basic idea behind a biweekly mortgage is to take your monthly mortgage principal and interest payment, divide it by two, and have that amount automatically withdrawn from your bank checking or savings account every two weeks. The result will be cutting a 30-year amortized mortgage down to about 22 years, depending on its interest rate, thus saving the interest for those last few years of the mortgage. Purchase Bob Bruss reports online. However, very few lenders offer true biweekly mortgages. But there have been several scams where entrepreneurs offer to convert an existing 30-year mortgage into a biweekly mortgage. They charge a stiff set-up fee, typically $395 or so, plus $5 to $7 per ...