overpay my mortgage

Visitor (not verified)
anonymous user
Registered: 12-31-1969
overpay my mortgage
4
Thu, 07-15-2010 - 2:17pm

Should I overpay on my mortgage if it is allowed?

iVillage Member
Registered: 09-16-2009
In reply to:
Thu, 07-15-2010 - 3:07pm

I would say yes.

iVillage Member
Registered: 04-21-2003
In reply to:
Thu, 07-15-2010 - 9:03pm

I think this is always a good thing to do if you can.
I know that you can find some online calculators that would show you how much you could save by increasing the frequency of your payments and also by making a lump sum or by increasing the amount each payment.
Just have all of your mortgage info ready so you can plug in the numbers and away you go.

I checked the calculator that I use on my mortgage company's website and this is what it told me when I said I wanted to add $100.00 extra to my bi-weekly payments;

"""With this comparison you will make $7,700.00 in additional payments during the term of your mortgage.

If you do this you will reduce the full amortization of your mortgage by 17 months, and eliminate 37 payments - this will save you $24,248.46.

After subtracting the extra principal payments made from payments saved, your actual savings are $16,548.46 over the life of your mortgage."""

I think this is a great way to save!

Nathalie

iVillage Member
Registered: 03-27-2005
In reply to:
Fri, 07-16-2010 - 11:43am

The answer to this question, IMO, depends on where you are on your financial journey.

Avatar for lucy4980
iVillage Member
Registered: 03-26-2003
In reply to:
Sun, 07-18-2010 - 9:19pm

I agree - it depends on what else you would be doing with that money and your long term plans.