No announcement yet.

extra principal payments? (mortgage)

  • Filter
  • Time
  • Show
Clear All
new posts

    [QUOTE=greenskeeper;305082]Actually you are not making banks rich by paying extra to the principal. It's the money they already loaned to you. If you take the mortgage out the full term, then you are making the banks rich on all the interest you pay over the life of the loan.[/QUOTE

    I would argue that you aren't making them rich because they already are that but you are certainly making them richer with early payments. There is a reason that they put the option for paying extra on the principal in your payment book and it's more than for your convienience. I fully get that they earn more over the life of a loan but so do I by not surrendering the extra money to them that I could put to work for me.
    "Those who can't remember the past are condemmed to repeat it".- George Santayana.