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Do you overpay your mortgage each month? If yes, by how much?

peabody Posted:

Do you overpay your mortgage each month? If yes, by how much?

LisaT Posted:

Re: Do you overpay your mortgage each month? If yes, by how much?

right now, we're just over paying by <$20 to bring it up to a nice round number.

But once we're done with our big projects we'll try to throw an extra payment in once in awhile.
lilmrs Posted:

Re: Do you overpay your mortgage each month? If yes, by how much?

we throw in 28 bucks to make it a nice round number...hey every little bit helps in the end.

bxgell2 Posted:

Re: Do you overpay your mortgage each month? If yes, by how much?

Not yet, but in a few months, when we've paid off the last of our credit cards we used to make all the home improvements, we're going to put about $500-$1000 a month in overpayments each month

Mel_and_Dave Posted:

Re: Do you overpay your mortgage each month? If yes, by how much?

what happens when you overpay?

bride04 Posted:

Re: Do you overpay your mortgage each month? If yes, by how much?

we did an 80/15/5 so we just pay the regular amount on the big mortgage and we pay as much extra as we can on the little one. usually a couple hundred dollars extra. the 2nd mortgage is a HELOC and the interest rate is adjustable so we want to get rid of it asap

TracyInQueens Posted:

Re: Do you overpay your mortgage each month? If yes, by how much?

I read somewhere that even making one extra payment a year can lead to big savings over the life of the loan. The article suggested dividing the cost of a monthly payment by 12, then adding on that much each month. By the end of the twelfth month, you've paid for 13. It's not much, but it's something.

chris605 Posted:

Re: Do you overpay your mortgage each month? If yes, by how much?

I too heard that and you can save ALOT of money...

bride04 Posted:

Re: Do you overpay your mortgage each month? If yes, by how much?

you might be able to set up what is called bi-weekly mortgage payments through your bank. if you make a half payment every 2 weeks by the end of the year you will have paid an extra months worth of mortgage payments since there are 52 weeks in a year. i think bankrate.com has a calculator that will tell you how much sooner you will pay the loan off and how much interest you will save

janwinterbridejoy Posted:

Re: Do you overpay your mortgage each month? If yes, by how much?

we make an extra payment every 2nd month

bride04 Posted:

Re: Do you overpay your mortgage each month? If yes, by how much?

here's the link for the calculator
D&C Posted:

Re: Do you overpay your mortgage each month? If yes, by how much?

Yes Suze Orman (love her LOL) says that an extra payment each year can reduce a 30 year mortgage to a 22 or 23 year mortgage. We are doing this as well.

dengal Posted:

Re: Do you overpay your mortgage each month? If yes, by how much?

I usually kick in a couple hundred extra a month. Even putting in a little extra (like $20 a month) will cut down the length of your mortgage.

julz33 Posted:

Re: Do you overpay your mortgage each month? If yes, by how much?

We enrolled to pay automatically each month, so we are mot paying extra each month, but I want to make at least 1 extra payment a year.

Kel Posted:

Re: Do you overpay your mortgage each month? If yes, by how much?

We were doing this .. but not anymore.

For us, the money is better off going to credit card debt. And it's not like having a mortgage is a totally horrible thing .. we find the mortgage interest deduction helpful.
chmlengr Posted:

Re: Do you overpay your mortgage each month? If yes, by how much?

We have a 20 year mortgage, and while we were double income, no kids, we paid an extra $500 per month Now that we are one income, and 1 child, we can no longer afford to do that and just round it up to the nearest buck.
Sassyz75 Posted:

Re: Do you overpay your mortgage each month? If yes, by how much?

My mother did this and was able to pay off her house in about 10 years. I think they cut the mortgage in half. Granted they bought in 1996- when the market was SUPER low.

All through the past few years of low rates they never refinanced- they just kept paying and now they own it.. I'm so proud.

It' s relief to know at least they own the house and can live there forever....

It helps a LOT to add the extra $$$
februarybride Posted:

Re: Do you overpay your mortgage each month? If yes, by how much?

Posted by TracyInQueens

I read somewhere that even making one extra payment a year can lead to big savings over the life of the loan. The article suggested dividing the cost of a monthly payment by 12, then adding on that much each month. By the end of the twelfth month, you've paid for 13. It's not much, but it's something.


That's what we do. Although I'm starting to think it doesn't make much sense since we don't plan on staying forever.
Florenze Posted:

Re: Do you overpay your mortgage each month? If yes, by how much?

We pay our monthly mortgage + an extra $137, which comes out to an extra mortgage payment per year.

cocoa Posted:

Re: Do you overpay your mortgage each month? If yes, by how much?

i read this recently somewhere that if you take the monthly payment and divide it by 12, you add that number to your mortgage so that at the end of the year, you had made an extra payment but it isn't in one lump sum so it doens't seem as big, but by doing that you can take off at least 6 years off your mortgage! don't have a house now,, but hey, sounds good to me!

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