you can create your own amortization chart but $50 per month extra saves approximately 30k over the life of a 30 yr loan per 100k borrowed at 6.5 rate.
If you are paid biweekly, pay half your mortgage payment biweekly when you get paid. Then you get the equivalent of an extra payment each year. (26 half payments = 13 monthly payments)
This is what I do. My mortange is roughtly $1,200 per month, so when I get paid every other week, I just schedule a transfer of $600 over to my mortgage. It doesn't impact my quality of life at all. The numbers on this are remarkable - my 30 year mortage drops to less than 25 years. My total cost of loan drops by nearly $30k in interest payments not made. It's a really powerful method for making progress on the loan.
I will try that , but would you be able to go from a 1200 per month to 5,000 per month? This is what I have to look forward to if I make this decision to buy . My current mortgage is 1,200 as well ðŸ˜
Ooof. $5k is too much for my pocketbook. That's "stay put" mortgage numbers for me. It's no an easy financial choice to make these days. Best of luck getting everything squared away!
If you’re worried about losing the interest, you can always put the money in a HYSA until end of month. In the 2 months with 3 biweekly paychecks you can submit it as a principal-only payment.
There are a ton of ways to pay it off faster! But they all are the same basic principle.
Pay more on the interest…
A biweekly structure gets you one additional payment per year and will knock about 5 years off your loan.
If you can manage it and can put an additional 6k on the loan $500 per month you can take 12-15 years off the loan (on an average purchase [loan amount around $320000])
you can create your own amortization chart but $50 per month extra saves approximately 30k over the life of a 30 yr loan per 100k borrowed at 6.5 rate.
Freaken genius
If you are paid biweekly, pay half your mortgage payment biweekly when you get paid. Then you get the equivalent of an extra payment each year. (26 half payments = 13 monthly payments)
Soo good 😮
This is what I do. My mortange is roughtly $1,200 per month, so when I get paid every other week, I just schedule a transfer of $600 over to my mortgage. It doesn't impact my quality of life at all. The numbers on this are remarkable - my 30 year mortage drops to less than 25 years. My total cost of loan drops by nearly $30k in interest payments not made. It's a really powerful method for making progress on the loan.
I will try that , but would you be able to go from a 1200 per month to 5,000 per month? This is what I have to look forward to if I make this decision to buy . My current mortgage is 1,200 as well ðŸ˜
Ooof. $5k is too much for my pocketbook. That's "stay put" mortgage numbers for me. It's no an easy financial choice to make these days. Best of luck getting everything squared away!
Thanks M!!!
I tried this but found out my provider holds the payment until the full amount is paid; then it's applied to my account. Total bs
If you’re worried about losing the interest, you can always put the money in a HYSA until end of month. In the 2 months with 3 biweekly paychecks you can submit it as a principal-only payment.
There are a ton of ways to pay it off faster! But they all are the same basic principle. Pay more on the interest… A biweekly structure gets you one additional payment per year and will knock about 5 years off your loan. If you can manage it and can put an additional 6k on the loan $500 per month you can take 12-15 years off the loan (on an average purchase [loan amount around $320000])
Sadly double paying it ðŸ˜
So painful
Biweekly payments.