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tray831
Dee-licious!
Member since 3/06 5355 total posts
Name:
His Baby
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Extra Mortgage Payments
Does anyone pay an extra mortgage payment? If so, how often do you make one?
Trying to figure out if one extra is paid a year (13 payments a year); how many years does that really cut off on a 20 year loan? I’m thinking not too much.
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Posted 9/23/20 5:48 PM  |
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RainyDay
LIF Adult
Member since 6/15 3990 total posts
Name:
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Re: Extra Mortgage Payments
I'm interested to know too
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| Posted 9/23/20 6:18 PM |
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GoldenRod
10 years on LIF!
Member since 11/06 26792 total posts
Name:
Shawn
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Re: Extra Mortgage Payments
https://www.bankrate.com/mortgage/prepaying-your-mortgage/
Here’s an example of how prepaying saves money and time:
Kaylyn takes out a $120,000 mortgage at a 4.5 percent interest rate. The monthly mortgage principal and interest total $608.02. Here’s what happens when Kaylyn makes extra mortgage payments:
PAYMENT METHOD--- PAY OFF LOAN IN…--- TOTAL INTEREST--- TOTAL INTEREST SAVED
Minimum every month--- 30 years--- $98,888--- $0
13 payments a year*--- 25 years, 9 months--- $82,870--- $16,018
$100 extra every month--- 22 years, 6 months--- $70,944--- $27,944
$50 extra every month--- 25 years, 8 months--- $82,452--- $16,436
$25 extra every month--- 27 years, 8 months--- $89,864--- $9,024
*Extra $608.02 payment
Message edited 9/23/2020 6:40:45 PM.
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| Posted 9/23/20 6:38 PM |
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queensgal
Smile
Member since 4/09 3287 total posts
Name:
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Re: Extra Mortgage Payments t
I always made extra payments ($1k) each month and a lump sum once per year timed with my bonus. I cut a 30 year to 23 by doing this. We are refinancing to a 10 (we’ve lived here 10 yrs). Every little bit helps in my opinion.
The exact math depends on your interest rate and how early you make the payments. For example, your first year making an extra payment saves more than if you are already in year 15. There’s calculators online or you should be able to call your mortgage company and request and amoritization.
Message edited 9/23/2020 8:27:39 PM.
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| Posted 9/23/20 8:25 PM |
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NervousNell
Just another chapter in life..
Member since 11/09 54921 total posts
Name:
..being a mommy and being a wife!
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Re: Extra Mortgage Payments
We did it every single month and paid off our 30 year mortgage in 17 years
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| Posted 9/23/20 8:31 PM |
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tray831
Dee-licious!
Member since 3/06 5355 total posts
Name:
His Baby
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Re: Extra Mortgage Payments
Posted by NervousNell
We did it every single month and paid off our 30 year mortgage in 17 years
Now, that's an accomplishment!
Wish I could do that. That's Awesome!!
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| Posted 9/25/20 9:03 AM |
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NervousNell
Just another chapter in life..
Member since 11/09 54921 total posts
Name:
..being a mommy and being a wife!
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Re: Extra Mortgage Payments
Posted by tray831
Posted by NervousNell
We did it every single month and paid off our 30 year mortgage in 17 years
Now, that's an accomplishment!
Wish I could do that. That's Awesome!!
Thanks. It's so amazing to not have a mortage. We are able to save so much more.
We always looked at it as, the money isn't earning anything in the bank with the way interest rates are...you get nothing.
So why not use that money to pay off a higher interest loan than to sit in a bank each month and earn next to nothing. So anytime we had extra cash, rather than put it in a savings account, we'd put it towards the mortgage principal. (we of course had emergency savings, etc)
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| Posted 9/25/20 9:13 AM |
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Diane
Hope is Contagious....catch it
Member since 5/05 30683 total posts
Name:
D
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Re: Extra Mortgage Payments
We called the mortgage company to see what would be worth dong, refinance or pay extra payments each month towards principal. It worked out that making those extra payments were worth it, because we would be paying a lot in closing costs.
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| Posted 9/29/20 12:52 PM |
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PitterPatter11
Baby Boy is Here!
Member since 5/11 7619 total posts
Name:
Momma <3
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Extra Mortgage Payments
Call your mortgage company. Our old company allowed us to tack on extra to each month. The new company requires us to do a separate payment to ensure it is applied to principal and not the interest.
We refinanced to a 15 year loan in 2015 and will have it paid off by 2025 by making extra payments throughout the year.
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| Posted 9/30/20 1:44 PM |
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NYCGirl80
I love my kiddies!
Member since 5/11 10413 total posts
Name:
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Re: Extra Mortgage Payments
There are calculators online that can help you play around with the numbers, but your best bet is to ask your mortgage company if you have questions.
We have a pretty low interest rate, but just did a loan modification for an even lower interest rate. The money is pretty cheap so right now, it's not worth me putting extra into my mortgage. I'd rather save for big expenses.
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| Posted 10/6/20 3:03 PM |
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