Monday, February 4, 2008

Save Money On Your Mortgage

One of the things that we are doing to save money is to pay extra principal on our mortgage each month. The cheapest way for us to finance our mortgage was to take out a second fixed rate mortgage for $24,999.00. We qualified for a VA loan but doing a conventional plus this second was cheaper down and kept the monthly payment within $4.00 of the VA loan. It is set up on a 30 year loan. If we pay an additional $57.00 a month it knocks off 15 years of the life of the loan and $34,872.00 off interest payments. We hope to add more in additional payments and pay it off even earlier then roll payments into the first mortgage to pay it off more quickly. It just takes a little to make a huge difference in the long run.


mom_of2boys said...

Another thing you can do is make bi-weekly payments. I work at a mortgage company that offers it but I don't know if all do.

Tonni said...

I just wandered onto your blog today... My husband and I are just-married, and we've decided that we're gonna try to live as frugally as possibe, and throw as much as we can at our mortgage now so maybe most of it will be paid off by the time kids come around!
I love hearing about others who are paying off more then expected, it means I'm not the only 'different' one!
Thanks for the encouragement!