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shoegal68
LIF Toddler
Member since 6/08 422 total posts
Name:
Sandy
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Making extra mortgage payments
every month when we get our mortgage bill i get sick looking at how much more we owe. i know we just bought our house about 6 months ago.
not sure if we should make 1 or 2 extra payments a year or should we just keep saving it for "unexpected expenses". for example our hot water heater just went last month that cost us about $500.00
does anybody else do this ??
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Posted 11/17/09 5:30 PM  |
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mandasue
LIF Adolescent
Member since 3/09 772 total posts
Name:
Amanda
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Re: Making extra mortgage payments
we pay over by almost 15% on each payment, its not that much extra on each month but it makes a huge difference in the interest and the length of the mortgage, but we also have our savings too
if you can comfortably pay extra as a principal payment then i would highly advise you do so but if it will makes things too tight or cut into your savings then i might not until you build up some savings
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| Posted 11/17/09 5:50 PM |
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KLSbear
LIF Adult
Member since 1/06 1908 total posts
Name:
Karen
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Re: Making extra mortgage payments
We've been paying extra every month and it's cutting our 30 yr. mortgage down to about 17 years with a significant reduction in interest we'll pay over the term. I prefer to do it at my own pace rather than the "twice a month" plan the mortgage company is pushing. They charge to sign up for it which is just BS.
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| Posted 11/17/09 6:33 PM |
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rkoenke
my little piggys
Member since 3/08 4315 total posts
Name:
rachel
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Re: Making extra mortgage payments
Posted by KLSbear
We've been paying extra every month and it's cutting our 30 yr. mortgage down to about 17 years with a significant reduction in interest we'll pay over the term. I prefer to do it at my own pace rather than the "twice a month" plan the mortgage company is pushing. They charge to sign up for it which is just BS.
they charge for that? ***? for what?
i want to do the every two week thing. if i do that, how much does that knock off the length?
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| Posted 11/17/09 8:29 PM |
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Nifheim
allo
Member since 1/09 5476 total posts
Name:
Jennifer
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Re: Making extra mortgage payments
my original plan was to do this and now we realize we need so much work done on the house it would be impossible to pay more unless both of us get another raise which will not happen.
I would def. budget for emergencies that is what we are doing then whatever extra you have then put it "for interest only" every penny will help!
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| Posted 11/18/09 10:36 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Making extra mortgage payments
Don't ever pay the bank to set up bi-weekly payments. Total waste of $$$$ when you can send an additional principal payment in every year.
Also don't forget paying the extra payment a year is for the principal.
So if your total mortgage payment is $2500, but $800 of that is escrow taxes and $100 is escrow homeowners then you only need to make an extra $1600 a year (or $133.30 a month).
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| Posted 11/18/09 10:57 AM |
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Rycois
Blessed with 2blue/2pink
Member since 12/05 13341 total posts
Name:
J
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Re: Making extra mortgage payments
One full extra mortgage payment a yr can really cut down on how long you'll pay for.
We try to use part of our annual tax return to make a full extra payment and apply it to the principle.
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| Posted 11/18/09 11:30 AM |
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KittyGags
LIF Adult
Member since 7/09 5614 total posts
Name:
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Re: Making extra mortgage payments
Posted by SweetCaroline
One full extra mortgage payment a yr can really cut down on how long you'll pay for.
We try to use part of our annual tax return to make a full extra payment and apply it to the principle.
The guy I bought my house from is a CPA. He said paying one extra payment a year knocks 7 years off your loan...is that even possible?
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| Posted 11/18/09 12:21 PM |
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Lisa
I'm a PANK!!!
Member since 5/05 22334 total posts
Name:
Professional Aunts No Kids
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Re: Making extra mortgage payments
Posted by KittyGags
Posted by SweetCaroline
One full extra mortgage payment a yr can really cut down on how long you'll pay for.
We try to use part of our annual tax return to make a full extra payment and apply it to the principle.
The guy I bought my house from is a CPA. He said paying one extra payment a year knocks 7 years off your loan...is that even possible?
thats what we were told also.
we pay almost 2 extra payments a year but we pay extra each month rather than one lump sum at the end of the year
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| Posted 11/18/09 12:29 PM |
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NRuby515
LIF Infant
Member since 9/09 210 total posts
Name:
Nicole - NikkiR515 on LIW
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Re: Making extra mortgage payments
Posted by KittyGags
Posted by SweetCaroline
One full extra mortgage payment a yr can really cut down on how long you'll pay for.
We try to use part of our annual tax return to make a full extra payment and apply it to the principle.
The guy I bought my house from is a CPA. He said paying one extra payment a year knocks 7 years off your loan...is that even possible?
That is what our lawyer said when we closed last week too. We will probably use our tax money every year to make an extra payment.
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| Posted 11/18/09 1:06 PM |
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Deeluvsvinny
DONE
Member since 10/08 4952 total posts
Name:
Whatever
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Re: Making extra mortgage payments
Posted by KittyGags
Posted by SweetCaroline
One full extra mortgage payment a yr can really cut down on how long you'll pay for.
We try to use part of our annual tax return to make a full extra payment and apply it to the principle.
The guy I bought my house from is a CPA. He said paying one extra payment a year knocks 7 years off your loan...is that even possible?
it's true. It's because when you pay extra you are paying down th principal amount of the loan. So when you make a $3000 regular mortgage payment, not all of that is applied to principal- some is interest, some is taxes & insurance.
But, if you make an extra payment of $3000 or even less- that entire payment is paying the principal. Same applies if you pay more than the mortgage payment each month.
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| Posted 11/18/09 1:11 PM |
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LightUpOurLife
Totally in love
Member since 8/06 12785 total posts
Name:
Bonnie-Jean
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Re: Making extra mortgage payments
My mom did this without telling my dad and it was a huge bonus at the end when she surprised him. I don't know how she did it because I was too young.
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| Posted 11/18/09 6:32 PM |
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shoegal68
LIF Toddler
Member since 6/08 422 total posts
Name:
Sandy
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Re: Making extra mortgage payments
thanks, we will probably see what we get back from our taxes & put it towards the principal.
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| Posted 11/18/09 8:03 PM |
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Christine
2nd verse same as the 1st
Member since 5/05 15287 total posts
Name:
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Re: Making extra mortgage payments
Posted by BJandDan
My mom did this without telling my dad and it was a huge bonus at the end when she surprised him. I don't know how she did it because I was too young.
That's really sweet!! It must have been so fun for your mom to surprise him. 
Message edited 11/18/2009 8:34:11 PM.
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| Posted 11/18/09 8:33 PM |
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evenedan
Need a little sunshine
Member since 9/05 3843 total posts
Name:
D
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Re: Making extra mortgage payments
We took the sum of two mortgage payments and divided it by 12 and that's how much extra we pay towards the principle on our mortgage each month. I'm hoping that means we're knocking 14 years off.
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| Posted 11/19/09 12:07 AM |
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