extra on mortgage or BS2 snowball

[mek42]

I've been rounding up to the nearest $50 for the mortgage payments. Should I instead just round up to the nearest $10 and apply the difference to the BS2 snowball?

[StanleyJohnson]

I'd put any extra toward BS2 before paying extra on the mortgage.
I'm assuming your consumer debt has a higher interest rate than your mortgage.

[krbshappy71]

Get rid of the debt first. Its fine to round up the small amount, but just think how much more you will have when you knock out that debt instead.

[frugalwarrior2]

Consumer debt should go first before the mortgage. Crown financial has great accelerated tables. It's a great site in general and free.

[mek42]

Ok. I'm going to budget for the mortgage like I have been, setting aside a certain amount each paycheck, but when it comes time to make the payment I'll divert the excess overage to the current snowball target.

While looking into how much more principal on the mortgage we needed to pay down before becoming eligible to no longer pay FHA mortgage insurance I learned that a 15 year mortgage with less than 90% of the home value mortgaged has no mortgage insurance payments regardless the number of years payments have been made. Yet another reason to go with a 15.

[mek42]

Executed the plan for the first time today. Made a total payment of rounding up to the nearest $50 for the mortgage, but the mortgage only received the amount rounded up to the nearest $10 and then the difference went to the current BS2 target, which is, ironically, Target.

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Target_______Target