Saturday, April 5, 2008

Mortgage fun

My mortgage is a standard 30-year fixed. I have the option to pay extra against the principal at any time, and I do so every month. I don't prepay a lot, but I do round my mortgage payment up to the nearest hundred. One of my favorite things is seeing my loan period drop by an extra month. That is, while I have 29 years and 1 month left in the 30-year period, I will have fully paid for my house after 28 years and 11 months. This month's extra payment finished off another month's worth of mortgage interest.

It's a small victory, I know, but it makes me happy. As my income increases, I do hope to increase my monthly prepayment further. As fun as it is to watch my mortgage figures every month, I definitely look forward to not having to make that payment. Maybe I'll finally win the lottery tonight.


Lord Hughes said...

I'm glad to see more people doing this. Even a little amount extra will saving hundreds of dollars in interest in the future. We've shaved almost 10 years off of our loan so far by paying a extra when we have the cash. Sadly when Meg goes back to school that practice will probably stop or be severely reduced. But we've paid enough extra to reduce how much interest we'll pay by at least $50,000 according to MS Money. So good job and keep it up and you'll save a lot of money.

babaBrian said...

I hope I win the lottery tonight, too!