If you choose to put it in a piggy bank for a rainy day, it will come to a time when your piggy bank will be equal to or greater than the mortgage you owe and will one day be able to have a glimpse at this weblink pay off the mortgage in a lump sum when the rainy day comes.
So cautiously save a nest egg for a rainy day today, while you get enough cash to pay off the mortgage later in a lump sum later on
Since I’m only on the 13th payment of a 360 payment (30 year) mortgage, every $100 I pay now saves my about $139 in interest.
Calculate your savings for a single $100 additonal payment this way: $100 times the interest rate, divided by 12, times the number of remaining payments on your mortgage. You have to eventually pay the $100 anyway, so you might as well save a lot of money over the long haul.
We plan on living and growing here
I’m from New Zealand. Little country to the west of us called Australia for those who don’t know where we are.
Any how, you cannot claim a tax deduction against your mortgage here. However you can make weekly payments on your mortgage. That DRAMATICALLY cuts the time, and interest, on a mortgage. However, you can’t make a single extra payment on your regular mortgage payment. It has to an extra payment done through the bank. But that’s ok, it means less chance of them stuffing up the calculations from the weekly payment changing. Also, our mortgage payment is an automatic deduction by the bank from our money account. No hassles, no late fees, no problem. Just how I like it.
We ad an extra whopping $12/month to our mortgage payment and I believe that little bit is taking 6 or 9 months off of the life of my loan. We were putting an extra $200/month, but that was before we had a child.
Finally being debt free (except for the house obviously), we can now put more money towards the house again. Every little bit helps. Hoping to pay it off in 15yrs, for a total of about 22yrs. Still less than 30yrs, so I’ll be happy with that.
I’d love to live in a condo or townhouse, but because we have gotten “burned” in our last condo deal, as well as all of those crazy HOA rules, the hubby never wants to live in a condo/townhome again. He goes crazy if he doesn’t have a garage which he can tinker in and make noise, so that’s why we bought a house.
Paying of a home early is a great option for those in different areas of the country. My state WA here over on the west coast. Our Cost of living here is very expensive. Not to mention homes. You can’t get a decent home for under 200,000. Anyways, we bought our home, we are able to live very comfortably by the grace of God due to our faithful giving too. Plus we have a reserve. Our home is about 450k. We are 28 years old. Great career. I wonder how would I be able to pay off my home sooner? I can definitely add or a month but will that even put a dent in it? We plan on living here for 30 years. Any suggestions? Maybe make two or three extra payment a year? We can definitely afford that. Hmmmm. Any advice would be great. I’m all for paying off our home at a young age. ??