2006-12-31 07:19:30 · 6 answers · asked by pb70 1 in Business & Finance ➔ Renting & Real Estate
Be certain to specify that the extra money goes towards paying the principal and not the interest.
At the end of the day, the more you pay off the principal of the loan, the less you will have to pay in interest.
2006-12-31 07:23:24 · answer #1 · answered by froggy010101 4 · 1⤊ 0⤋
If you have positive cash flow every month, then this is the best method I have seen:
http://www.mortgage-accelerator.com/
Basically you put your entire paycheck towards the mortgage, then use credit cards or a HELOC to pay your bills and normal expenses. You then use your second paycheck to pay off the credit cards and/or HELOC. This will work faster than any other method out there because interest is computed on a daily basis, even on weekends.
Regards
2006-12-31 15:39:11 · answer #2 · answered by Anonymous · 0⤊ 0⤋
our mortgage co offers a bi-weekly plan.......you pay 1/2 the payment every two weeks.......you end up with 1 extra payment a year and it should cut down alot of the interest.....we can't afford that...you can also call the mortgage co and they'll explain how to pay extra principal......
2006-12-31 15:25:39 · answer #3 · answered by nemofish 4 · 0⤊ 0⤋
write a separate check to the bank and put a letter saying "please apply this money to the principal". that way you will pay off the loan more quickly. make sure you don't have a prepayment penalty associated with your loan though.
2006-12-31 15:21:56 · answer #4 · answered by Dr_Sus 2 · 0⤊ 0⤋
Call your mortgage company and ask them, they will not automatically apply extra $ to the principal.
2006-12-31 15:23:11 · answer #5 · answered by CAM1122 3 · 0⤊ 0⤋
make your normal monthly mortgage check out for that much more... there is no trick to it. You can have your bank auto deduct it weekly so your balance decreases faster.
2006-12-31 21:49:40 · answer #6 · answered by Anonymous · 0⤊ 0⤋