Monday, January 17, 2011

How I'm saving $7.21 on my next mortgage payment

I noticed something an extra bonus of paying the extra $1,000 to the second mortgage last week. The principal we would be paying on the next payment was $36.56 (the regular payment total is $194.89).  But now that I put the extra $1,000 towards the mortgage, the principal amount that comes out of regular payment will be $43.77 - a difference of $7.21. I was originally going to wait until next month when the bill is due and pay $2,000, but I'm happy I was impatient and paid $1,000 of that early!  It motivated me enough that I just sent them another $200.  I think for now on, I'm not going to wait until the bill is due to pay the extra principal, I'm going to pay it whenever I have the extra money.  Every day that mortgage balance is being charged interest, so if I can reduce the balance - even just by a little bit, I'll save on paying interest.

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