One popular strategy for accelerating the payoff of a loan is to make 'Bi-Weekly' payments. Under a Bi-Weekly mortgage plan, you will make payments to your lender every two weeks instead of monthly. Each payment will represent half of your monthly payment. One important thing to note here is that this method will result in you making 26 payments each year, which is two more than you would make if you made a payment on the 1st day of the month and middle of the month, so you will have to budget accordingly. By making Bi-Weekly mortgage payments, you will comparatively make an extra monthly payment each year which will reduce your amount owed. By making payments every other week, you will also save a bit on interest charges for the outstanding loan balance that would normally still be there until the end of the month.
This is a free financial education resource. Some of the products mentioned may not be offered by Horizon Credit Union at this time