Pay Off My Home Loan - What is the Fastest Way to Pay Off My Home Loan?

The Best Way to Pay Off a Home Loan for You May Be Very Different from that for Your Neighbor..

It is basic understanding that every situation demands a different solution and there is no one-size-fits-all when it comes to financial planning. While there are basic financial principles that everyone can apply, there are factors in each individuals situation that greatly affect what method of pay off is fastest for them. What's more, at the moment, there is no place online, with rare exceptions, that offers a complete analysis that incorporates all these factors completely free of charge. As such, these guidelines are often overlooked since most online calculators, and even financial planners do not take these into consideration.

The most commonly used methods for debt management, specifically when it comes to home loans, are:

Higher Payments towards the Principal every month
Bi-Weekly Payment Plan
Refinancing the mortgage at more favorable terms
Using management software in combination with Money Merge Account systems
Debt Consolidation for overall lowered interest rates

Within these, one can take multiple sub-paths of payoff based on their situation. The most common things that greatly affect what method will be most effective include:

Frequency of income - this is usually ignored by most financial planners, but if you earn on a bi-weekly basis, your idea pay off method will be very different from someone who earns every quarter, or in bulk at every season (common for commission earners, farmers, and the like).

Time of property ownership - How long you've owned a property will also greatly influence what method will be good for you. For example, refinancing and consolidation can get you a better loan agreement, but one can end up de-leveraging of they sell the property before recovering the closing costs, or if they 'reset the interest clock' on their debt.