I've heard that if I have a 30 year mortgage, making the extra payment can take close to 10 years off the mortgage.
2007-07-18 07:45:50 · 10 answers · asked by knightsprincess66 1 in Business & Finance ➔ Credit
Yes, because that full payment goes 100% toward principal. None of it goes toward escrow or interest. The faster you can pull your principal balance down, the less interest you pay and the faster it is paid off.
2007-07-18 07:48:44 · answer #1 · answered by sortaclarksville 5 · 0⤊ 0⤋
Yes, some mortgage companies try to sell you on setting up to do by weekly mortgage payments for a fee, saying you can pay off mortgage faster . Don't do it. You can accomplish the same thing for free by just adding a little money to the principle every month or making an extra payment once a year. Say your mortgage is $1,200 a month and you add an extra $100 to go towards the principle every month. You've just made an extra payment or you can do it once a year. What ever works for you. It will save you tens of thousands on your mortgage and pay it off sooner.
2007-07-18 08:09:37 · answer #2 · answered by rufusuloser 2 · 1⤊ 0⤋
Check out this link at BAnkrate.com
http://www.bankrate.com/gookeyword/calculators/mortgages.asp
It has a mortgage calculator. Fill in your initial information. Once it calculates you can calculate how an extra payment will affect your mortgage. It will give you the new payoff date as well as the whole amortization table if you like. I think when I was monkeying around with it I found that one extra payment early in the year made more of a difference than one at the end of the year.
2007-07-18 07:56:56 · answer #3 · answered by tlsmom 3 · 0⤊ 0⤋
I don't know about 1pmt a yr to take off 10 years. But this is easy for you to do. look at get a calculator and and see what your payment will be on 15yrs. on the months that you are able make the payment on your loan if it were a 15 yr loan instead of a 30 yr loan. also when paying extra always always put a not on your check telling the bank that you are doing so and want the extra to go to principle only.. good luck :)
2007-07-18 11:05:40 · answer #4 · answered by woodlvtohlp 3 · 0⤊ 0⤋
One extra payment a year will take several years, but probably not ten, off a 30 year mortgage.
2007-07-18 14:57:03 · answer #5 · answered by Judy 7 · 0⤊ 0⤋
Absolutely. Paying even $100 extra per month can do wonders. You can probably do the math specific for your mortgage if you do a web search for mortgage calculators or call your mortgage company.
2007-07-18 07:55:14 · answer #6 · answered by t_avalon 3 · 0⤊ 0⤋
is there a tax advantage to making an extra mortgage payment per year
2015-01-26 08:52:53 · answer #7 · answered by predfan 1 · 0⤊ 0⤋
I'm not sure it will be ten years, but assuming you have all your other debts paid off, and you are committing the maximum amount of money you can you your 401K and a Roth IRA, it's not a bad place to spend your extra investment income. However, over the long haul, you'd probably be better off earning about 9% in stocks than 4% in real estate. It's not a bad thing, but there are better places for your money, assuming you want to grow net worth.
2007-07-18 07:51:05 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Sure it will pay your balance down since the extra money goes directly to the principal. To understand credit better I found a great website.
http://www.1-800BadCredit.com Not that you have bad credit, that's just the name of the site. They have lots of information. Good Luck.
2007-07-18 09:58:05 · answer #9 · answered by Dewey K 2 · 0⤊ 0⤋
17 yrs definite. You study the object incorrectly. it particularly is that in case you're making an further concept fee each month. Your loan assertion has a line for including greater concept. So deliver an further $50, a hundred or greater each month
2016-10-21 22:35:11 · answer #10 · answered by ? 4 · 0⤊ 0⤋