When you divvy up your monthly budget pie, housing is very likely the biggest slice, especially after you add in utilities, maintenance and of course, your mortgage.
Getting out of mortgage debt faster is a great way to save money on interest payments. For those who make additional payments on their mortgage it can save them money in the long term. A homebuyer can make prepayments on their mortgage principal any time, once a month or once a year, or whenever they want to. The principal is the amount they borrowed to buy the house and have to pay back to the lender. This is separate from the interest, which is what the lender charges you for lending the money. If you pay extra on the principal, it can help pay off your mortgage before the maturity date of the loan. Read the rest of this entry »