The most painless way to ramp up your mortgage payments and shorten your amortization period is switching from monthly to accelerated bi-weekly payments, or increase your monthly payments by any % within your pre payment options on your mortgage. See my two examples below:
1. An accelerated re payment schedule is a monthly payment divided by 2 and paid 26 times in the year.
eg. Instead of making your payments monthly, ask the lender to go accelerated biweekly and on a $350 000.00 mortgage at 3.25% you can SAVE approx. $9300.00 in the first five years of your mortgage.
2. Take a $350 000.00 mortgage amortized over 25 years, based on the rate being 3.25%.
Increase your payments by 10% using your pre payment options:
Your payment will go from $1701.58 to $1871.74 and you will shave approx. 10 years off your mortgage and save just over $62 000.00 in interest.