Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Probably has been covered so excuse if so. I got on the Wells Fargo plan two payments per month and a third payment twice per year. Added $100.00 per biweekly payment and knocked 15 years of the mortgage.
I thought about added more monthly but seems that I have hit the max return. Any thoughts or ideas?
If you have any other debts, i would stop paying extra to the mortgage and get rid of those first. Before you try to pay a house off you should be debt free, have a 6 month emergency fund, and be fully funding your 401k.
If you havent met those goals first, stop paying the extra, take care of the above than pay extra to mortgage.
I don't think there really is a "max return". Interest is charged on the remaining balance. The lower the balance, the less you pay in interest, the faster the loan goes away. However, since interest is a percentage, you do suffer from diminishing returns. But you never reach a point that paying more doesn't continue to help.
I'm also paying more on my Wells Fargo loan, although I'm not doing the biweekly thing because I get paid semimonthly, so I don't have extra checks during the year.
I agree with Victor though, pay off all your other debts first, build an emergency fund and fund your retirement accounts. I reached that point this year, so now I'm paying off the mortgage as fast as I can afford.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
