4 ms·

By paying off five times more a month than the bank really wants you to when they gave you the money. (How is he able to do that? By working like a maniac, I

• markcampbell 12y ago
  He/she would only have to pay 3.28 times his normal payment in order to pay it off in 1/5th of the time. It's paid off more quickly because by paying more, you reduce the amount of interest that accumulates. On a $100k 20 year loan at at 5.7% (I know, example), interest paid would be around $67k (so total $167k). By paying 3.28 times more per month ($2300 per month versus the $700 normal rate), the interest paid ends up being only around $12k.
• clebio 12y ago
  Also, by having refinanced recently, when the rates were stupid low. My mortgage interest rate is lower than my student loans interest rate, and on at 15-year mortgage. Along with making extra monthly payments, you're in the 7-year payoff range. All depends on how much of your income you put to the extra payments. I don't make mad bills, but it's still quite feasible.