Just an extra $50-$100

[ekmallette]

If you put just an extra $50 to $100 along with each house payment to be applied toward the principal, you will end up paying way less interest in the long run. It's truly worth it to overpay on those payments when you can as it all adds up in the end to a big savings!

[mandiees]

Thanks for the advice! Is this true no matter how much your payments are, or is this number a percent of what you are paying?

[ekmallette]

Originally Posted by mandiees

Thanks for the advice! Is this true no matter how much your payments are, or is this number a percent of what you are paying?

It's not a percent, and it doesn't matter how much your payments are...you just overpay and specify that the extra is to go towards your principal. That way, when the interest is calculated on the principal, there is less of it. Eventually it saves quite a bit!

[Oigen]

That's true, but how many times can we actually afford to overpay? We're having problems putting food on the table, not to mention gas in our tanks. Where to get the money to overpay?

[Orrymain]

This is true of any debt/credit card that we have. It's always good to pay extra because the extra goes to principle. The problem is, it's harder than ever to come up with 'extra', but if you can, do it!

[Rabscuttle]

It's true - as long as the contract doesn't have a penalty for doing this (most don't). But as pointed out, where is this "extra' supposed to come from. From my experience, most people spend right up to the amount that they make.

[Orrymain]

or don't even make enough to break even -- and that's why they get in deeper

[elvenrunelord]

Be careful to check your mortgage to see if it allows this type of overpayment. Many today don't. And if your in the process of getting a new mortgage, now is the time to make sure that opportunity is there. Remember you have way more power than the banks do. They have to loan you money to make a profit.

[DianaR]

I think I will forgo making extra payments on the mortgage and have heat, then enjoy deducting what I am paying to my mortgage, on my taxes longer.

[jhellie_baby]

hi there. i agree with you. i prefer to pay the extra bucks. that would not be a problem as long as you keep the contract terms.