How to Accelerate Your Mortgage Payoff – follow-up

I received a number of responses to my recent post How to Accelerate Your Mortgage Payoff.

Great! I hope, if you’re not already doing it, you will try this technique and see the amazing results for yourself.

I can assure you this works and is really very easy to do. We did it recently for our son and his wife when they bought their new home. They made the first payment and, for their housewarming gift, we made the next 11. Since we were paying principle only and no interest, it was a very wonderful and not-that-expensive gift to give.

By doing that, the 2nd payment they made was the first payment of year 2 on their original amortization schedule. An entire year of interest was saved, and the most expensive year for interest, the first.

As I mentioned in the original article, your online account immediately updates the amortization schedule allowing you to verify that the payments were applied correctly.

Before sending in those extra payments, we contacted the bank and they assured us any extra payments come off the next scheduled principal payment.  Just to be sure, we always include a letter of explanation, as we have known instances when the extra was applied to final payments (which have no interest on them and, therefore, no savings to you).

Hope you try this. Let me know how it works for you!