BlueISilverfox
2465
59
6
May 3, 2023 3:45 AM
BlueISilverfox
2465
59
6
Alurkerforcedtologin
You got this.
NoFuxToGive
Death pledge
ChrisVZ
If you can, pay extra to your principal each month, especially in the beginning. This has put my 30yr on pace to be paid in 23.
TalleyZorah
1/5 of the way done, nice work!!
MandalorianHybrid1
You are 29 ahead of me. Well done!
Alurkerforcedtologin
Pro tip, instead of paying once per month, pay every two weeks. Even if the same amount of money comes out every month, because you paid 1/2 way thought the month, you get less interest accrual (1/2 a months interest every month), and can save 10s of thousands over you loan. If you add even $10 a payment, it can reduce your total cost by thousands as well.
notacobra
Also: offset accounts and 0% interest credit cards. Let the banks pay your interest for you.
Alurkerforcedtologin
I bounced my debt every 18 months to a new, zero interest, no transfer fee card for about a decade as I paid them down interest free, and paid off other loans that couldn't transfer. Everyone said I was mad. But I paid off over $50k in debt in 9 years with an effective interest rate of less than 3%, during a "once in a lifetime recession", twice. So, mad like a fox, I say!
ElbowDeepInAHorse
Wait, what. IS THIS A THING.
HopelessNecr0mantic
One extra payment per year turns a 30 year mortgage into a 22.5 year one.
Millwr1ght
Monthly: 12x / year
Twice a month: 24x / year
Every 2 weeks: 26x / year
In theory, if you can do half a month's payment every two weeks, you can squeeze in an extra month's worth per year
ElbowDeepInAHorse
Ohhhh now I get it! Okay so it's basically the same as putting extra on principal, which I do already. ^^
kwyjiboner
Well, you pay less interest incrementally as well, since you pay every two weeks principal drops faster.
Alurkerforcedtologin
I'm going to save $12,500 and cut 2.5 years off my mortgage by paying every two weeks and adding $50 each pay. Totally worth it if you can afford it!
ElbowDeepInAHorse
I've been paying an extra $75 every month but I had no idea about paying twice a month
Alurkerforcedtologin
For sure, talk to your mortgage servicer (Bank or whatever lending company) and see if they can run the numbers for you. With a little tweaking, you can have them calculate what your bi-weekly payment would need to be to pay it off in whatever arbitrary number of years you want.
Alurkerforcedtologin
Here's an example: let's say your loan was $65,000 at 4% interest over 30 years. Monthly payments would be $310.32, Total interest $46, 715.18. bi-weekly payments $155.16, Total interest $39,117.10. That's the savings of $7,598.08.
Alurkerforcedtologin
Adding the equivalent of $25 extra payment per month would increase your average monthly payment to $167.66, shorten your loan term to 22.7 years instead of 30, and save you $12,746.89 (edited, typed in the wrong column. Lol)