Reducing The Principal

Expert, localized Los Angeles answers provided by Heather Roy

Reducing The Principal
	Dear Edith: I have heard there are other ways to reduce your mortgage other than making additional payments to the principal? I am interested in paying off my 30-year mortgage early and wondered what the alternatives might be other than a re-finance to a shorter term or increasing monthly principal payments?

	Sorry, but I don't know of any way to whittle down a mortgage debt faster except by making extra payments.Those "magic" bi-weekly payment plans still involve what amounts to one extra payment per year.If you have a fixed-rate mortgage, sending extra principal payments shortens the remaining time. If you have an adjustable-rate loan, extra payments reduce the debt, but your time remains as scheduled.You still save on interest, though, as your monthly payments are adjusted lower than they would have been otherwise.
	Edith Originally published on May 1, 2005

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