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Old 11-16-2009, 10:13 PM
 
Location: DFW - Coppell / Las Colinas
36,641 posts, read 40,470,284 times
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I usually always add extra to my monthly payment. A tip... if you do pay extra write a check and fill out the payment coupon the old fashioned way. I'm a believer in on line bill pay but this tells them where to put the extra and you have a hard copy of the check.
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Old 11-16-2009, 10:33 PM
 
Location: Denver, CO
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I heard of another cool way to pay off your mortgage early. Figure out how much 1/12th of your monthly payment is and write a separate check for that each month to be applied to the principal (eg. 1000/month payment = additional $83/month) You'll end up paying off a 30-year mortgage in something like 22 years.
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Old 11-16-2009, 11:54 PM
 
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A fairly painless way to pay off your mortgage in half the time is to look at how much principal you're paying every month, and then just double that amount. At the start of a 30 year note, you may only be paying $100-200/mo toward principal, so it isn't too hard to come up with the an extra month's worth. Toward the end of the mortgage, you'll be paying almost twice your required payment, but 15 years worth of raises should be enough to make it fairly painless.

If you're ever tempted to skip paying the extra principal payment, just ask yourself whether you'd rather cough up the extra couple hundred today or work an extra month to pay a couple thousand ten years from now.

It also helps (a lot) to keep a copy of your amortization schedule in your bill paying drawer so you can check off those extra payments to track your progress. I started off with double principal payments on my first house, but after I got my year end bonus I realized I could use it to eliminate an extra years worth of debt servitude instead of buying more 'stuff'. After that, it became a game to see just how many principal payments I could check off every month. Less than five years later the fifteen year mortgage was paid off and I've never regretted doing it that way
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