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    extra principal payments? (mortgage)

    How many of us make extra principal payments every month to OWN our home sooner?
    22
    yes
    63.64%
    14
    no
    36.36%
    8
    Gunga galunga...gunga -- gunga galunga.

    #2
    We pay extra on our mortgage. We paid extra on our first mortgage and paid off the house in 4 years so we are firm believers in paying extra on any debt we have. Interested to see what others are doing.

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      #3
      I voted yes, because I do, but if the question is 'should you?', the answer is really - it depends. For the average person, I'd say no because the average person doesn't have all of their other financial needs in order - emergency fund, retirement savings, college savings, other debt repaid, etc. I think all of that stuff should be taken care of before putting extra toward the mortgage.
      Steve

      * Despite the high cost of living, it remains very popular.
      * Why should I pay for my daughter's education when she already knows everything?
      * There are no shortcuts to anywhere worth going.

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        #4
        I'm currently doing a refi. My payment will drop 133.00 per month on a 15 year note. Had I refied to a 10 year note my payment would have been 1054.00(303.00 difference). I'm going to take that 303 and invest it, then payoff my house whenever this investment will payoff the house, which I hope will be sooner than ten years.

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          #5
          When we had a mortgage, we did, and it saved us thousands of dollars. It's been about a decade since the mortgage was paid off, so I don't remember the precise figures, but we had the mortgage for about 8 years, I think.

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            #6
            I currently am, but certainly have not always. (Pretty much never, the first 12 years). Paying off a mortgage ASAP is great, but I have had other priorities (financial and otherwise).

            Our goal has always been to be mortgage-free by age 45. (Well, that's the plan since having kids and cutting our income in half). Is very likely we can beat this goal if my spouse re-enters the workforce. Then, we'd probably just pay it off in a few years and be done. I suppose I believe in hitting it hard if it can be done fast, but not so smart if it still takes decades (which is where we are at on one income).
            Last edited by MonkeyMama; 09-05-2011, 07:59 PM.

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              #7
              I don't and won't as long as I can borrow at 4%. If the interest rate was higher I likely would pay extra.
              "Those who can't remember the past are condemmed to repeat it".- George Santayana.

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                #8
                If we had enough to make any extra payments right now, I most certainly would! I am making extra payments on my student loans in the same vein.

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                  #9
                  We did, when we had a mortgage.
                  seek knowledge, not answers
                  personal finance

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                    #10
                    I am unsure if this would benefit us. We have 13 years left on our mortgage but plan to have more children (currently have 1 with 1 on the way) and see ourselves in a bigger home in 5 years. We could comfortably pay extra on principle now but should we since we see ourselves moving in 5 years? Our interest rate is 4.8% ( I believe) on 68,000 mortgage.

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                      #11
                      I used to pay an extra $100 a month on mine. I had a 15 yr note, and many say not to pay extra on a 15yr loan, but my other debts and investments were in order, so I did. It worked out to 2 extra payments a year.
                      Brian

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                        #12
                        Nope can't afford to and save for other things period. We're saving for retirement and paying bills and saving for a newer car, paying off newly purchased car, college, so mortgage is low on the totem pole. Maybe in 10 years. For now we just have a lot of bills and growing our income.
                        LivingAlmostLarge Blog

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                          #13
                          I am making extra principal payments to pay off my mortgage to coincide with retirement.

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                            #14
                            interesting that the majority of us that responded to make extra payments.

                            Even the smallest amount ($100/month) can takes years off the note and save thousands in interest.
                            Gunga galunga...gunga -- gunga galunga.

                            Comment


                              #15
                              Originally posted by greenskeeper View Post
                              Even the smallest amount ($100/month) can takes years off the note and save thousands in interest.
                              Well, if the choice is to spend $100 per month or pay extra on the mortgage, the choice is clear. If the choice is mortgage vs invest, the choice is not as easy.

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