(Closed) Interesting! Increased mortgage payment by $100 and took 10 years off!

posted 6 years ago in Home
Post # 3
Member
13099 posts
Honey Beekeeper
  • Wedding: July 2010

Yeah – it’s pretty easy to pay down a mortgage a lot faster (and therefore save a ton in interest) by throwing a little extra money towards it each month.

Comes in handy! 🙂

Post # 4
Hostess
16213 posts
Honey Beekeeper

Wow! That makes a huge difference!

Post # 5
Member
4355 posts
Honey bee
  • Wedding: June 2013

Fiance and I have been doing this since we bought 2 years ago. We figure why not, we don’t have kids and could definitely spare the extra money. Which will be worth so much more in the end.

Post # 6
Member
12973 posts
Honey Beekeeper
  • Wedding: November 1999

That’s awesome!  How excited were you to see that much time shaved off!?

Post # 7
Member
7431 posts
Busy Beekeeper
  • Wedding: October 2009

I wonder if this is beneficial to a person who plans to sell their home within the next 10 years? Or rather, how beneficial it would be?

Post # 8
Member
1766 posts
Buzzing bee
  • Wedding: April 2011

We did that, too, and USAA just ended up sending us a check with the money that we “overpaid”, lol!

Post # 9
Member
11349 posts
Sugar Beekeeper
  • Wedding: May 2009

@FutureMsVW:  That is great news! Yes, paying even just a couple of extra payments toward the principal each year can really shave down the life of the mortgage.

@MrsSl82be:  If you have the funds to spare, it’s still a good idea. Even if you can’t pay off the house within the next ten years, you’ll end up owing the bank much less at the time when you eventually sell your house and pay off the mortgage.

Post # 11
Member
10571 posts
Sugar Beekeeper
  • Wedding: January 2011

@MrsSl82be:  What PPs said.  It doesn’t matter if you’re selling or not.  It’s like paying off a low interest credit card.

Post # 12
Member
5977 posts
Bee Keeper

@AprilJo2011: They probably did that if they applied the overpayment to your escrow instead of your principal balance. You have to specify that you want the extra payment to go towards principal.

@AB Bride:  Not necessarily. If you invest the $100 each month and your return is greater than your interest rate, you’re missing out on money that you could have had.

Post # 13
Member
10571 posts
Sugar Beekeeper
  • Wedding: January 2011

@2PeasinaPod:  How is that different than paying off a low interest credit card?  I’m not saying paying off the mortgage as fast as possible is always the best decision, just that whether or not the house will be sold doesn’t make too much of a difference.

Post # 14
Member
915 posts
Busy bee
  • Wedding: December 2012

I am pretty sure paying it bi weekly makes the bigger difference, I believe it takes off 7 years and the extra $100 a month takes off three….. So, just paying an extra $100 a month won’t take off 10 years but paying every two weeks is huge! Any extra towards Principle is awesome.

Post # 15
Member
1766 posts
Buzzing bee
  • Wedding: April 2011

@2PeasinaPod:  Yes, that’s what happened. A quick phone call straightened things out and they held on to the money. It was a bit funny, though. No, don’t send that money back, we gave it to you for a reason!

The topic ‘Interesting! Increased mortgage payment by $100 and took 10 years off!’ is closed to new replies.

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