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.
Well, 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.