2013- Extra payments towards principal thread

[DawnM]

We are in the process of refinancing again. We are getting 2.6% and our payment will go down $226/mo. We are thinking of just continuing to pay the same amount for our mortgage, but then I too wonder if doing something different with the money wouldn't be a better idea. We have kids getting to be college age soon. We have a car that will most likely need replacing in the next several years (and a new driver before too long!)

Our loan will also save us over $15K over the life of the loan even if we pay no additional principal towards it.

Just not sure what we are going to do at this point.

Dawn

 

[BeachLove]

Will your mortgage company allow a biweekly payment? That means you pay 26 times half the mortgage cost. And it winds up being one extra payment a year. Which reduces the length of your mortgage a lot.

It seems that they allow as many payments as I want each month. I have all the accounts linked so that its super easy to just transfer $20 here, $100 next time. I only put in $1500 last year in extra, so this year it needs to be upped.

 

[BeachLove]

This is a great idea!! I have been paying extra on my principle for awhile now. I give myself a yearly goal, this year its around the $20k mark hopefully more. I hope to have my house paid for by the time I am 38 at the latest.... Good Luck & We can do this!!!

We have the same 'pay it off by this age' goal!

 

[gracie1]

After thinking about the extra payment, I also have a home equity loan - it was a 15 year loan and I have 12 years left. Wouldn't it make more sense for me to sink the extra money into this to get it paid down first??

 

[amcnj]

To me it would depend on the interest rates of the mortgage and the home equity loan, paying down the one with the higher rate first.

 

[KennesawNemo]

I was paying an extra 10%, around $120 a month towards my mortgage until last month, because we are looking for a new house and don't want to have too much money tied in the current mortgage.

Once we find the new house and sell the current one, I will continue to pay 10% extra on a regular base and more if I get bonus/reward/tax return.

I won't pay too much more though. I want to max out my 401K/ROTH first. I haven't been doing so because I am trying to save up down payment for the new house.

 

[BeachLove]

Added for Feb!

I'm hoping to put more money towards the principal on my mortgage this year. Anyone else in for 2013? My goal is $3000 by Jan 2014.

Jan $150
Feb $160 moved checking money into the mortgage. Plan on more later in the month.
Mar
Apr
May
Jun
Jul
Aug
Sept
Oct
Nov
Dec

 

[Cheshire Figment]

I am paying enough extra on my mortgage as additional principal that I have 38 months to go with my current payments. Without the additional payments I would have 86 months to go.

Also, looking at my revised amortization table I am saving $10,173 in interest over the life of an original 15 year loan for $102,000.

 

[BWV Dreamin]

I am paying enough extra on my mortgage as additional principal that I have 38 months to go with my current payments. Without the additional payments I would have 86 months to go.

Also, looking at my revised amortization table I am saving $10,173 in interest over the life of an original 15 year loan for $102,000.

Awesome!!! We are advocates of paying extra principal payments. It enabled us to pay our house off very early!!! Takes discipline but oh what a relief it is!

 

[*Flower*]

I pay one regular mortgage payment plus the principal from the following month's payment, and as of now I have 4 more months to go and the house will be paid off!
I will have turned a 30 year mortgage into a 13 year mortgage, and the mortgage company will have missed out on over $200,000 in interest.

I can't wait!!

 

[BWV Dreamin]

I pay one regular mortgage payment plus the principal from the following month's payment, and as of now I have 4 more months to go and the house will be paid off!
I will have turned a 30 year mortgage into a 13 year mortgage, and the mortgage company will have missed out on over $200,000 in interest.

I can't wait!!