mortgage payoff ?

**happymommy** · 04-05-2005, 10:31 AM

I noticed many of you have paid off your mortgages early. Do you have any tips to offer. Also how many years did you take off your mortgage loan?

Thanks, you have inspired me to get going on this debt. Jan

**PrairieRose** · 04-05-2005, 05:42 PM

We paid our mortgage off about 11 yrs. early but honestly we could have done it sooner had we been intent on it. We didn't start our debt reduction plan until the year 2000. At that time we owed about $25,000. on our mortgage (original amount was $55,000.). What we did was to take an amount of extra money that we had coming in of $300/mo. and starting applying that to our existing car payment(s). As we got each of those paid off early, we then "snowballed" the amount over on to our mortgage. Before we knew it, it was paid off! If you haven't yet, you might want to read Dave Ramsey's "Financial Peace". It's full of great advice regarding debt and ways to get rid of it.

**handmerounds** · 04-06-2005, 11:39 AM

I have heard that if you make one extra mortgage payment a year that it will cut many years off your mortgage. I don't know from experience, wish I did!

**Kimberlina** · 04-06-2005, 11:53 AM

We haven't paid ours off yet, but we started with a 20 year mortgage and then refinanced to a 15 after a year and a half. We plan on having it paid off in only 11 at he longest.

We do it by paying a little extra each month. The sooner you pay the extra, the sooner you stop paying interest. So rather than waiting and making one big payment, we pay at least $20 extra toward the principle each month. It is very important that you make it clear that any extra is to go toward the principle (by writing it on the check) or the lender will likely hold it and apply it to the interest for the next month. Luckily, our coupons have a box right on them that you can check to have any extra o toward the principle.

And the sooner in the life of the loan you do this, the better. Towad the end you are paying very little interest, so you don't gain much by doing this.

**happymommy** · 04-15-2005, 07:56 PM

thank you

**Darlene** · 04-15-2005, 08:41 PM

Any extra money we could find we paid towards the principal. We paid ours off in 10 years instead of 15. We did that one one income & have 2 kids. Lisa is so right, you pay off one loan & then take that money & put it towards another debt. Snowballing works. Good luck!

**Mommy2five** · 04-16-2005, 03:08 AM

those that applied extra did you request an amortization schedule or just applied to the principal?

**PrairieRose** · 04-16-2005, 04:17 PM

We didn't ask for an ammoritization schedule. We just paid the extra to the principal. When I did my own "figures" and could tell I was getting close I called for a payoff.

**Chea** · 04-18-2005, 01:07 PM

We're going to start doing this starting May. I figure if we apply $100 extra to the car pay and $10,000 and $100 to the house pay we'll really see a diff and it won't be so painful as a whole payment. I agree, its so inspiring to see others finish.

**bandysmom** · 05-01-2005, 12:07 PM

There is a great mortgage calculator on www.bankrate.com. You can keep changing the figures and see how your payoff date will change. I paid my house off in 7 1/2 years but I was working a lot of overtime and putting every extra penny onto the principal. It can be done.
If I can do it anybody can!

**debbiepittman** · 05-05-2005, 10:25 AM

Once we get our cc and small loan debt taken care of, we are going to start on mortgage (if we don't get it sold and move elsewhere in which case, we'll work on a mortgage on another home)....we plan to use our income credit tax refund to pay large payments on our debt.

We get about $6,000 back in taxes each year. So far it has gone on getting my parents' old car, repairs, stuff we need and some recreation, plus some debt. Next year, it will be sunk into our debt reduction company plan to pay off our debt early. (Current estimate is 4 years without making large additional payments on it.)

Debbie