You can pay off your loan faster in one of two ways:
Refinance your 30-year loan to a 15-year loan.
By converting your 30-year loan to a 15-year loan, you can reduce
your total interest costs; however, you will pay a higher monthly
payment. Depending on how much interest rates have fallen an increase in
your monthly payment could still be cost effective.
Calculate
the difference between a 15-year and 30-year loan.
Make extra principal payments each month or year on your loan.
If your loan does not carry a pre-payment penalty, you can pay
extra principal each month or make an extra payment any time during
the year. The amount in excess of your monthly payment is directly
credited to reducing the principal balance of your loan. If you make an
extra payment every year on a 30-year loan, you will pay off your loan in
approximately 22 1/2 years.
