I think what you mean is: how do you accelerate the payments on an existing mortgage? Basically, you just make extra payments. If you make one extra payment per year, you can end up paying off a 30-year mortgage in significantly less time (say 5-7 years less). The reason is that anything you pay in excess of your monthly payment is applied solely to the principal of the loan. There are various ways to set up accelarated payment schedules for yourself. One way is to simply double your payment one month per year. Another is to divide your monthly mortgage amount in half and pay that amount every two weeks. This will result in roughly one extra monthly payment per year. Or, just increase each monthly payment by 1/12th. Whatever works for your budget.
I think what you mean is: how do you accelerate the payments on an existing mortgage? Basically, you just make extra payments. If you make one extra payment per year, you can end up paying off a 30-year mortgage in significantly less time (say 5-7 years less). The reason is that anything you pay in excess of your monthly payment is applied solely to the principal of the loan. There are various ways to set up accelarated payment schedules for yourself. One way is to simply double your payment one month per year. Another is to divide your monthly mortgage amount in half and pay that amount every two weeks. This will result in roughly one extra monthly payment per year. Or, just increase each monthly payment by 1/12th. Whatever works for your budget.
Yahoo has a calculator that shows you how much you will save and how much you will reduce the length of your mortgage by making extra payments: http://partners.leadfusion.com/tools/yahoo_loan/home16/tool.fcs