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Paying Off A Mortgage Faster & Saving $$$ On Interest

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To pay your mortgage faster, some lenders offer an option to pay half payments every 2 wks instead of monthly full payments. (Like making 13 payments/yr.) Do it yourself by paying extra ea month toward the principle. Divide your normal payment by 12 & add that much or more to ea. monthly payment.

MORE INFORMATION:
Check with your lender about how to submit extra payments. Your mortgage will be paid off faster & you will save thousands in interest over the years. Use an online mortgage calculator to see how much you can save by paying $50, $100 or $200 more ea. month.
- Submitted by STORMY724 7/2/2010 in Saving Money | 9 Comments
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Member Comments

SWAN47 7/3/2010 3:27:00 PM

    GREAT IDEA IF YOU CAN AFFORD IT! THANKS FOR SHARING. I THINK BEST TO PAY OFF CREDIT CARDS FIRST AS YOU CAN'T DEDUCT FROM TAXES. emoticon
STORMY724 7/12/2010 8:24:00 AM

    Several people have commented on my suggestion. Of course you want to pay off your highest-interest-rate loans first (usually credit cards.) That goes without saying. Also, when the stock market is doing extremely well, you might want to invest your money instead of paying off a mortgage. If, for example, you can earn a 12% return on an investment but only pay 5% interest on your mortgage, you might want to invest. Once the market goes down or is unpredictable, as it has been lately, you might want to put extra money toward your mortgage.
JIBBIE49 7/5/2010 7:59:00 AM

    If you are smart you have a VERY low interest rate on your mortgage, since rates have been "rock bottom" so paying it off early isn't really the best unless you already have money set aside for the kids college education, your retirement, and all credit card debt paid.
LVPINKSUNSET 7/4/2010 5:11:00 PM

    Mortgage companies charge hundreds of dollars to do the payment every two weeks program. You don't have to pay that to add a little extra money to your principal each month. Even an extra 10 dollars a month can shave years off your mortgage.
NABDULSABOOR 7/4/2010 9:55:00 AM

    this is a great idea, but i agree with the other posters who recommend getting ride of that credit card debt.
MOMNCREW8 7/3/2010 9:55:00 PM

    I wish my mortgage company would allow this, but I've asked and they don't. But I've worked it out on paper before and it is a great idea.
QUEENIE2U 7/2/2010 1:03:00 PM

    I have doing this for 4 years and my mortgage is almost paid off!
CINNAMONGURL06 7/2/2010 8:28:00 AM

    I love this idea, I don't have a home to pay on but I am going to try this with my car loan and other bills. Thanks for sharing!
GOLDIELOCKSBEAR 7/2/2010 7:49:00 AM

    While paying off debt is a great idea paying off your mortgage early should be the last debt you pay off. The interest you incur on a mortgage or a home equity line of credit is tax deductible while other debt is not like credit card debt. I would highly recommend that if you are a home owner you do not maintain a balance on your credit cards first then once you can monthly pay off your credit cards in full, as well as any other debts that are not tax deductible, and you have extra money then consider investing for your retirement, your children's education, or paying off your mortgage early.

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