Hope for your financial life and beyond

4 Ways to Fund That Extra Mortgage Payment

For most people making one monthly mortgage payment is challenging enough. Why in the world would you want to make an additional one? Seems like that extra mortgage payment would be pushing the monthly budget a bit too far.

extra mortgage paymentWell, if you can see the bigger picture, the money you put towards an extra mortgage payment now can have significant impact on your long-term financial health. The more you pay and the earlier you pay it will reduce the amount of interest you owe over the life of the loan. You could be looking at tens of thousands of dollars saved in the long run.

If you don’t believe me, run your own numbers on any online mortgage calculator. You’ll be amazed on how much you can save.

Making an extra mortgage payment each month (or even a partial payment) takes a strategy. More importantly, it takes extra money. That’s where the real problem lies. When you look at your monthly budget you may be left scratching your head wondering where that extra money is going to come from.

Back when my wife and I decided to pay off our mortgage early, we faced the same problem. Here are the ways we came up with to free up some money to make that extra mortgage payment.

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Stay the Course: Our Success Happened One Step At A Time

Hidden Nuggets Series #40 – “The plans of the diligent lead surely to plenty, but those of everyone who is hasty, surely to poverty.” – Proverbs. 21:5

stay the course

One station at a time

It’s been a fun and busy week at Luke1428. On Monday, I shared that we had finally paid off our mortgage early. I followed that up on Wednesday by explaining the four big reasons why we chose that route. Needless to say, there has been a whole bunch of page views this week, more than I expected. I guess this is a hot topic after all.

Of course, those who commented here and on my Facebook page have been excited for us. Believe me, so are we. It’s been a conviction of ours that we have been pushing to complete for over four years.

I couldn’t help but feel that some who shared seemed discouraged. They talked about how long it would take them to pay off their mortgage and that they couldn’t ever imagine reaching that goal. Maybe I’m reading into the comments, which is a really easy thing to do.

If you feel that way, like the end is never going to come, I’d like to say three things:

1. We’ve all felt that emotion.

2. One step at a time.

3. The tortoise always wins.

Stay the Course and Have Success

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Goodbye Mortgage and Lender B.O.A. Hello Baby Step 7!

finished paying off the mortgage

My reaction to paying off the mortgage

Remember the feeling of those significant milestones in your life?

That time you moved away from home.

That day you said, “I do.”

That moment when your kids finally grew out of diapers.

That big job promotion or beginning a new career.

All of these and many more have occurred in my life and in our household. The one we experienced recently surely ranks in the top ten in matters of earthly importance.

We’ve Paid Off Our Mortgage!

Goodbye Bank of America. It’s been…uh, “nice” knowing ya. Hello Baby Step 7!

This event actually occurred in February. I walked into our local BOA and received the deer in the headlights look upon mentioning I wanted to pay off our mortgage. They appeared happy for me but I knew better. What was really running through their minds was “Rats…lost another one.”

They thought worse than that when learning I also wanted to close all my accounts. The only reason we opened a checking account there was because they purchased our mortgage from Countrywide years ago. It made it simpler to pay down our mortgage as we could transfer money to BOA from our main bank at PNC.

Uncharted Financial Waters

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5 Common Rental Real Estate Mistakes Landlords Will Make

rental real estate mistakesSo, you are ready to take the rental real estate plunge and become a landlord. Awesome! I hope that you have come to that decision by desire (you really want to do this) and not by necessity (you were forced into it because your house wouldn’t sell). One of those scenarios (hint: the first one) generally works out better than the other.

My wife and I have been renting properties for some time now and our landlord experience has been positive. I believe our success comes from a desire to run a quality business, as we never considered this to be a whimsical adventure. We spent over a year studying the idea to make sure rental real estate was right for us because we knew it has its darker side. I believe we set ourselves up for success as landlords by doing that because we went into it with our eyes wide open.

Rental Real Estate Mistakes Landlords Should Avoid

Even with all our preparation we made some mistakes with our rental real estate. Here are five big ones I want to help you avoid.

1. Paying too much for a property

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