Finishing my Mortgage

Write on By Write on, 3rd Jan 2012 | Follow this author | RSS Feed | Short URL http://nut.bz/9i_0u_yt/
Posted in Wikinut>Money>Mortgages

My 25 year mortgage has 9 years left on it. Only 6 years have passed. You do the math! It's my first house and a very exciting progression. I recommend this to all home owners.

Mortgage Excitement for Newbie

I bought a house in 2006. Very exciting stuff, as any first time home owner knows.
I started with bi-weekly payments, as recommended by my banker. This creates a few extra payments over the course of the year, as opposed to monthly payments.

She also recommended making lump sums or increasing the payments as I went. The lump sums never seem to happen for me. I struggle with saving; always seem to spend once I get a sizeable amount. So, the small increases were the way to go. And I am glad I did!

With online banking, I increased my payments by $25-$50 slowly bringing my mortgage payments from $628 to $778. Over the 5 years, the small increments have not been noticed. $150 every 2 weeks would not be possible for me all at once, but over time, the small adjustments worked.

The 1st time, I increased only $25. That felt easy. Who doesn't have $25 every 2 weeks? That's $12.50 a week. I carried on like that for 12 months. Then another $50 to the payments. And so on.

The really great thing was how easy it was to do online. No bank meeting, no paperwork. For me, this was key.

This method has shaved off 9 years of my mortgage already. It's an incredible feeling. I hope to be able to do a few more increases and be mortgage free even sooner than 9 years.

It's one of those things that makes a big difference in the long run.

Tags

Assessment, Bi-Weekly Payments, House, Less Debt, Mortgage, Owner

Meet the author

author avatar Write on
I have my Education Degree with a major in Fine Arts. As a teacher, I love and beleive in the value and power of writing.

I will be writing about death, divorce, family, travel, dating, hosting students, diabetes, health, and education.

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Comments

author avatar Jerry Walch
4th Jan 2012 (#)

It's the little that often make a big difference in life, that's for sure.

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author avatar ittech
28th Jan 2012 (#)

I thank you. It is nice to see it.

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author avatar Rose*
22nd Nov 2013 (#)

That's incredible - you've made compound interest work for you!

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