Thursday, April 06, 2006

Saving on Your Mortgage

Did you know that you can reduce a 30-year mortgage to 17 1/2 years by simply making one extra mortgage payment a year? This is because extra payments go right to the principle and thus cuts your interest dramatically. Some people do this by making a payment every four weeks instead of once a month. You could also make an extra payment at year end or if you get a big tax refund. The extra payment doesn't even have to be an exact mortgage payment, you can send more or less. Whatever you send goes straight to the principle. Sometimes you need to spend a little to save a lot.

1 comment:

Barbara Frank said...

This really works! We started prepaying on our first house, rolled our profit into the second house, and paid it off 14 years after we bought it. There is NOTHING like being debt-free!