Took a big step toward killing off my mortgage today. I refinanced last October to 15-yr fixed 3.125% and had a $100,000 balance. I took a chunk of savings, plus my pay from some contract work, plus my state and federal refunds (a total of $40,000) and applied that as extra principal in my last payment. Man it is scary writing checks that big!
Over the life of the mortgage this automatically saves me $18,400 in interest compared to if I paid full term. It also shaves over 6.5 years off my time to payoff, even if I just make the normal payments. But I'm hoping if I can keep saving at the rate I have been that payoff in 4 years might be possible.
Pay early if you can! Even small extra payments to principal mean huge savings in the long term.
Submitted March 02, 2017 at 06:41PM by Relaxed_Engineer http://ift.tt/2mR3c0O
