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Old 04-22-2010, 09:38 PM
 
Location: Lyons, France, Whidbey Island WA
17,502 posts, read 13,859,526 times
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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?

Appreciated.~~
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Old 04-23-2010, 08:20 AM
 
Location: Plano, Texas
1,675 posts, read 6,728,789 times
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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.
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Old 04-23-2010, 09:54 AM
 
Location: Boise, ID
8,047 posts, read 26,485,897 times
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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.
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