2006-11-16 12:59:26 · 11 answers · asked by kygator3 1 in Business & Finance ➔ Personal Finance
When making a payment, pay some extra to apply strictly to the principle on the loan.
2006-11-16 13:02:35 · answer #1 · answered by Shaula 7 · 2⤊ 0⤋
if you are paid every two weeks - set up to pay half your mortgage out of each paycheck - that will not only give that 13th payment - it will also cut down on some interest as you are making a payment 2 weeks earlier
second idea - increase your payment each month by 10% - that will also help - and pay as soon as you can - don't WAIT for the due date - you will save more on interest charges than your savings account will grow in that amount of time
best of luck - o and either method - should pay your 30 yr mortgage off in about 17 years - HAHAHHAHAHA
2006-11-16 13:04:13 · answer #2 · answered by tom4bucs 7 · 0⤊ 0⤋
Short answer are correct, but here's more detail. Each Month write two checks, one for the correct amount of your mortgage payment.
Write a Second Check for any amount you can afford - more than 100.00 otherwise the bank will think its a makeup payment!!
Write on the check in the MEMO area, lower left: APPLY TO PRINCIPAL ONLY! - if you get a statement - check your Balance - each month, to be sure that the bank reduces your principal (not interest) If you feel that the bank (Mortgage Company) is NOT applying the extra payment -- call them, and speak directly to an account representative for your Account. Make your desires clear (if the bank (MC) is cashing checks -- they have to reduce your principal.
There is no such thing as "Prepayment Penalty" - don't take that guff - if they throw that you -- mumble "FEDERAL BANKING REGULATIONS" and ask for their name and title.
Good luck -- I did it!!!
2006-11-16 13:11:04 · answer #3 · answered by Julie T 1 · 0⤊ 0⤋
You can try to elimiate a debt that you have already by spending any excess cash on that debt, then take the money that you used to eliminate that debt towards your mortgage. You could also pay your mortgage bi-weekly rather than monthly, and pay a little more than what you would normally pay.
2006-11-16 13:01:29 · answer #4 · answered by sweetie pie 2 · 0⤊ 0⤋
Send as much extra money with each payment as you can. This might not sound like much but it can save you literally thousands of dollars over the term of your loan.
Even if its only $30 a month! But better yet try to do $100 or more!
2006-11-16 13:08:07 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Make a 13th payment per year.
Divide your mortgage by 12, and add that amount to your monthly payment.
2006-11-16 13:01:03 · answer #6 · answered by Anonymous · 0⤊ 0⤋
pay every 4 weeks
that adds up to 2 extra payments a year
2006-11-16 13:07:40 · answer #7 · answered by Mopar Muscle Gal 7 · 0⤊ 0⤋
Send the mortgage co. more money.
2006-11-16 13:01:02 · answer #8 · answered by Anonymous · 0⤊ 0⤋
pay extra on the premium
2006-11-16 13:00:40 · answer #9 · answered by Anonymous · 0⤊ 0⤋
Pay more money.
2006-11-16 13:00:42 · answer #10 · answered by soul_plus_heart_equals_man 4 · 0⤊ 0⤋