The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Contact
  • Subscribe
  • Submit an Article
  • Books
  • Categories
  • Coaching
  • Book Lynnette
  • Money Coach University™
No Result
View All Result
The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Contact
  • Subscribe
  • Submit an Article
No Result
View All Result
The Money Coach
No Result
View All Result

How Much You Can Save by Making Extra Mortgage Payments

Lynnette Khalfani-Cox, The Money Coach by Lynnette Khalfani-Cox, The Money Coach
in Real Estate
Reading Time: 2 mins read
extra mortgage payment
21
SHARES
348
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

If you’re thinking of making extra payments on your mortgage in order to more quickly eliminate your house note and become debt free, you may be wondering: “How much money will I save or how many years will I knock off my mortgage if I send in extra payments to my bank?”

Unfortunately, this isn’t a calculation you can do in your head, since it involves the complex process of amortizing a loan over decades.

So one resource I would recommend is Bankrate.com and their home mortgage calculator. You can enter a few bits of information, and this calculator will tell you exactly how much you’ll pay over time – in interest and principal – on a given mortgage.

You can also play with Bankrate’s calculator to see the impact of adding extra payments each month, sending your lender one additional mortgage payment each year, or making a one-time payment at a specific time.

Many lenders allow you to make bi-monthly payments on your home loan; doing bi-monthly payments can shave about 8 years off of a typical 30-year mortgage.

Just be aware that your lender may charge you a fee to get set up with bi-monthly payments.

If you don’t want to pay the bank’s fee, you can also send in payments on your own reducing your mortgage.

And you can do whatever suits your budget.

Some people send in one extra mortgage payment once a year. Others choose to add a fixed amount, say $200 or $300 additional cash on top of their normal monthly mortgage. And some homeowners just make payments every two weeks on their own.

To be on the safe side, when you make an extra payment, send a written notice to your mortgage company indicating that you want the payment put against your principal balance.

That way, there’ll be no confusion about what the “extra” money is for and how it should be applied.

Tags: Mortgage
Previous Post

Tax Tips For Holiday Giving and Donations

Next Post

Important Car Lease Terms You Should Know

Related Posts

Beautiful home

Refinansiering Med Sikkerhet I Bolig – Refinancing with Security in Homes

by AskTheMoneyCoach UK Edition

Refinancing Your Home There are many reasons to refinance your home, but usually, it is to save a money on your monthly payments. You can also refinance for other reasons, but these are the most common. This can be accomplished by lowering your interest rate or extending the length of...

Text MORTGAGE APPLICATION on Office desk table with keyboard, notepad and analysis chart on a white background.

Two Important Mortgage Terms You Need to Understand

by Lynnette Khalfani-Cox, The Money Coach

Getting a home loan can be a confusing process.  You have to decide whether to get a fixed-rate mortgage or an adjustable-rate loan. You’ll want to shop around and qualify for the best loan rates and terms. And when you’re signing on the dotted line for one of the biggest...

long way road of asphalt with white straight line in the middle and infinite direction and travel distance concept. asphalt and mountains around for traveler and adventure concept. no cars no people long-distance move

Making a Long-Distance Move? Here’s How to Budget and Plan for Success

by AskTheMoneyCoach

Moving can be exciting, but it can also be one of the most stressful experiences you will ever face. This is especially true when you are moving long-distance.  Whether you are moving for a new job, to be closer to family, or simply for a change of scenery, it is...

Sad unhappy black female and male in red t-shirts look at computer, have problems with gadget, service and bills

The True Cost to Get Rid of Your Timeshare

by AskTheMoneyCoach

Owning a timeshare can be a great way to enjoy vacations, but it's not for everyone. If you want to get rid of your timeshare, you may be wondering about the costs involved. From legal fees to transfer fees, there are several expenses to consider. This guide will help you...

African American real estate agent professionally explaining about housing agreement to couple

Negotiating Your Rental Agreement: Tips for Saving Money

by AskTheMoneyCoach

When searching for a new home, you’ve probably come across some great places just slightly out of your budget. If this is the case, and you really want the place, you could try negotiating your rental agreement to get precisely what you want. Many landlords will be open to adjusting...

VA loan. US department of veterans affairs papers.

VA Loans Help Veterans Achieve Their Dream of Homeownership

by AskTheMoneyCoach

For many Americans, the dream of owning a home is a significant aspiration. However, this can be challenging for some individuals, especially those who have served in the military. Fortunately, an exceptional program provides extra assistance to veterans and current active service members in achieving their property-owning dreams. This program...

A perfect neighborhood. Houses in suburb in the north America. Top of a house with nice windows over blue sky. Beautiful Home Exterior. Real Estate Exterior Front House

The Truth About Race and Homeownership – Video

by Lynnette Khalfani-Cox, The Money Coach

https://youtu.be/JjKNdxrKIVwIn this video "The Truth About Race and Homeownership," I discuss the sad truth about race, homeownership, age, and other factors in America. I mention two recent research reports, one from the National Association of Realtors and the other from the Federal Reserve Bank of New York, highlighting the problem. According...

Load More

Popular Posts

  • Car repair

    What to Do If You Can’t Afford a Car Repair Bill

    1528 shares
    Share 611 Tweet 382
  • What to Do if Your Spouse Stole Money From You

    1310 shares
    Share 524 Tweet 328
  • What to Do If You Can’t Afford to Leave Your Spouse

    1274 shares
    Share 510 Tweet 319
  • Here’s Why I Pay My Kids For Good Grades (And Maybe You Should Too)

    1130 shares
    Share 452 Tweet 282
  • What Do All Those Strange Codes In My Credit Report Mean?

    900 shares
    Share 360 Tweet 225
  • Which Credit Report is More Important: Equifax, Experian or TransUnion?

    867 shares
    Share 347 Tweet 217
  • Do This Now If Your Wages Were Not Reported

    854 shares
    Share 341 Tweet 213

Categories

  • Bankruptcy
  • Budgeting
  • Building Wealth
  • Careers
  • Couples and Money
  • Coupons and Deals
  • Covid-19
  • Covid-19 Video
  • Credit Cards
  • Credit Reports
  • Credit Scores
  • Crypto
  • Debt
  • Entrepreneurship
  • Family Finances
  • Featured
  • Identity Theft
  • Insurance
  • Investing
  • Loans
  • Paying for College
  • Personal Finance
  • Press Releases
  • Real Estate
  • Retirement
  • Saving Money
  • Scams
  • Student Loans
  • Taxes
  • Uncategorized

All information on this blog is for educational purposes only. Lynnette Khalfani-Cox, The Money Coach, is not a certified financial planner, registered investment adviser, or attorney. If you need specialty financial, investment or legal advice, please consult the appropriate professional. Advertising Disclosure: This site may accept advertising, affiliate payments or other forms of compensation from companies mentioned in articles. This compensation may impact how and where products and companies appear on this site. AskTheMoneyCoach™ and Lynnette Khalfani-Cox, The Money Coach® are trademarks of TheMoneyCoach.net, LLC.

©2009-2023 TheMoneyCoach.net, LLC. All Rights Reserved.

RSS / Sitemap /Submit an Article / Privacy Policy / LynnetteKhalfaniCox.com

No Result
View All Result
  • Books
  • Categories
  • Contact Lynnette
  • Get Coaching
  • Book Lynnette
  • Money Coach University™
  • Home
  • Subscribe to Newsletter
  • Submit an Article

©2009-2023 TheMoneyCoach.net, LLC. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist