Numerous companies frequently advertise that they can help you pay off your mortgage in a hurry. These services, which are known by several names, most often "mortgage accelerator", advertise that they can take up to 10 years off of your thirty year repayment schedule. All that is required to reap the rewards of their program is to apply by paying a costly fee. Is a mortgage accelerator worth the money?



These programs essentially offer what is often caled a biweekly mortgage. The lender will charge a few hundred dollars to enroll in their plan, along with a fee every two weeks. By enrolling, you agree to allow them to take one half of your mortgage payment out of your bank account every two weeks. The programs do work as promised, but not because of any monetary magic used by the lenders that offer the services. The programs work because you are paying more money.

There are fifty-two weeks in a year. By removing one half of your mortgage payment out of your savings or checking account every 14 days, you are making twenty-six half-payments, or thirteen payments per year, rather than the twelve you were making previously. By making an additional payment every year, you are paying off your loan principal more quickly and lowering interest that will be applied to the remaining loan balance. This will, over time, take a few years off of the time it takes to repay your mortgage.

Are these systems worthwhile? They could be, but only if you are a bit lazy. It is not necessary to enroll in a plan or pay upfront and pay monthly fees to make use of this method of debt repayment. Almost any lender will allow you to pay extra funds at any time. All you must do is indicate that the extra money is to be applied to the loan principal. A lot of lenders have a place on the coupon that you mail in or use on their Website for that express purpose. You may send in a bit of additional cash every month, or you could send in one full additional payment each year. The net effect is virtually the same either way.

If you are curious about making extra contributions towards paying off your home loan early, all you need to do is call your mortgage company and ask what options might be available to you. You will likely learn that several free options are there.