Bi-weekly Home Loan Payments

• Home loans typically have 30-year payoff terms due to the amount of interest charged by mortgage lenders. Every home loan has an interest rate, but the way you choose to make your home loan payment determines how much interest you actually pay during the life of the mortgage. Lenders require one payment once a month. However, you can discuss a new payment schedule with your lender and opt for twice monthly payments. Pay one half of your payment on the 1st and 15th of the month and save on interest charges. Paying less interest with bi-weekly payments helps reduce your mortgage balance quicker.
  
  

Higher Payments

• Increasing your current monthly payment is another tactic to quickly bring down your mortgage balance and get rid of the debt sooner. Review your finances to determine the best method for making higher payments. One option involves making an additional "principal only" payment each month or making an extra mortgage payment at different times throughout the year. If you receive a tax refund or bonus from work, consider using this money to reduce your mortgage.
  
  

Decreasing Home Loan Term

• A 30-year mortgage means you'll pay off your home loan in 30 years. To reduce your mortgage quicker, one strategy involves agreeing to a 15- or 20-year home loan term. If you already have a home loan, discuss refinancing with your home loan lender to decrease the term. Picking a shorter home loan term will increase your mortgage payment. However, this method reduces interest charges and pays down the principal in less time.
  
  

Mortgage Payment

• Mortgage reduction doesn't only apply to the mortgage balance. Borrowers who experience financial distress may need options for reducing their actual monthly payment in order to keep their home and save their credit rating. Lenders can help in this regard with a home loan modification. Modifications reduce the interest rate and payment on an existing loan. By changing the terms of the original mortgage agreement, lenders help borrowers stay inside their homes. Discuss eligibility with your mortgage company's hardship department.