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Old 01-27-2012, 09:57 PM   #11
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Re: Is it true....mortgage question

Yes, it is true. Pays it off quicker

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Old 01-27-2012, 10:04 PM   #12
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Re: Is it true....mortgage question

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Yeppers it is true. We pay an extra 600 a month on our mortgage. This will have out 25 year mortgage paid off in 14 years and save us 130k in interest. We are now FOUR years away from having no mortgage. We should have it paid off right around my 40th birthday

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That is awesome! Our goal is to have it paid off before DS starts High School (in 14 years). Y'know, so we can pay for private HS.
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Old 01-27-2012, 10:09 PM   #13
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Re: Is it true....mortgage question

It is true but you get the MOST bang for your buck the earlier on you make extra principal payments. I would recommend getting a program to track your mortgage with interest and add in extra principal payments. Several times when I made extra princ. payments, the bank put it in wrong and I had to call and have them put it in correctly so it applied to principal. The only reason I knew they were wrong was b/c the program told me exactly how much we should owe. Keeping track of it myself (in MS Money - which unfortunately no longer exists) has saved me a TON of money in interest.
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Old 01-27-2012, 10:26 PM   #14
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That is awesome! Our goal is to have it paid off before DS starts High School (in 14 years). Y'know, so we can pay for private HS.
The way we are going our oldest should be 11 or 12 (grade 6 or 7) when the mortgage is paid off. This gives us 5 years to get ready for post secondary. We have a great university in our city as well as a college so as long as the kids stay local we will be able to put all three through university which makes us very happy. We will have our oldest two in at the same time as they are just a year apart then 5 years later the baby bee will be ready for university.

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Old 01-28-2012, 05:21 AM   #15
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Re: Is it true....mortgage question

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I pay everything online through my bank, so since ive been sending in a little extra should i assume its going to the principle?
No. I would not make that assumption. Banks do weird things. They might be holding it and then applying it to the next month's payment or something. I'd look at your statements and see what the payments are doing.

Paying more is a great thing to be able to do! We paid off our last house in 2 years, because I was working. This house will be about 10 instead of 15.
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Old 01-28-2012, 06:21 AM   #16
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Re: Is it true....mortgage question

Yeah with a bank I would never assume they are applying it to the principle. I would look and see to make sure. I pay online and there is a separate line to add extra for principle. And yes its very true that even a little bit can help take years off your loan!!
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Old 01-28-2012, 06:25 AM   #17
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If u pay it at the same time as reg payment yes however if your sending in an extra payment two weeks later they may take out two weeks worth of interest. It just depends on how your bank works.
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Old 01-28-2012, 06:49 AM   #18
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Re: Is it true....mortgage question

We have our mortgage payments set up for every two weeks. It comes right out of our bi-weekly paycheck. It basically amounts to one extra payment a year and you can really see your mortgage get paid off quite a bit faster!
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Old 01-28-2012, 06:53 AM   #19
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Re: Is it true....mortgage question

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Originally Posted by KrisM View Post
No. I would not make that assumption. Banks do weird things. They might be holding it and then applying it to the next month's payment or something. I'd look at your statements and see what the payments are doing.

Paying more is a great thing to be able to do! We paid off our last house in 2 years, because I was working. This house will be about 10 instead of 15.
Yup... never assume. A bank is a business, after all, and there is a lot of fine print.

We'll have our house paid in 4 more years, cutting 23 years off the mortgage and saving ourselves~ $150k by not paying them interest over the years.
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Old 01-28-2012, 10:55 AM   #20
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Re: Is it true....mortgage question

We pay most of our bills online. Our mortgage and college payment are the only two we don't as we want the extra line to add more to the principal. Pay by check with the check stub. I am not sure what I did with our stub last month so I did pay online and didn't pay extra for that reason (oops I thought I set it aside and I probably did but where).
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