I agree. There is nothing magic to paying off your mortgate early. You owe so much to the bank, (the principal). Because they lent you that money, you pay them interest. The monthly payments you have were figured out by your lending institution to pay off the loan in so many months. If you have a 30 year term, they figured out how much you have to pay every month to get the principal and interest payed off in 30 years.
If you want to pay off the mortgage early, you have to pay the principal off faster than they figured. There are lots of "systems" to do it, bi-weekly; send in an extra payment every year; with every payment, send in an amount equal to the interest accrued that month, etc., but these are just games people play to get themselves to send in extra money to the principal.
It might take an extra envelope every month and another piece of paper telling the lending institution to apply the extra money to the principal, but that is all you have to do to send it in yourself. You don't need to pay anyone else to handle it for you.
|