The big payoff

Image courtesy of iosphere at

Image courtesy of iosphere at

For a lot of people a home will be the largest single purchase they will ever make and the most expensive. Take a look at a 1098 form from a mortgage holder. It shows the total interest paid and the total amount applied to your mortgage. In the early years it can be very discouraging.

But you can change that! Get rid of any additional costs like private mortgage insurance (PMI), if you have it. Then apply that amount towards your mortgage every month.

Make additional payments any way you can. Pay half your regular payment every two weeks, if your lender will allow it, which adds up to an extra full payment every year. Or make one extra payment per year, increase your monthly checks by one-twelfth, or you could even use your tax refund to make a large lump sum payment.

Anyway you can do it, make a plan and make the BIG pay off. You can save thousands.

If you are living mortgage free, please comment on how GREAT it is!