@demi wrote:
I was originally going to go with the idea of an extra payment once a year, end of June I get all my management leave paid out that I haven't used. But, the idea of being able to break my mortgage payments up into my pay schedule would make it a lot easier. Get paid every other Friday, so it would be 1 month extra payment a year. Then, unused management pay can go to home improvement !
Just open a savings account, and every paycheck deposit half the monthly mortgage. Transfer the exact amount of each payment to checking just before making each payment, and at the end of the year you'll have enough in that account to make an extra principal payment. If and when you have a little extra cash, put that into this account as well so you can make a bigger principal payment at the end of the year.
Here is what the Mortgage Professor (whose entire web site is an excellent resource, by the way) says about extra principal payments as an investment:
http://mtgprofessor.com/A%20-%20Amortization/is_unused_home_equity_a_missed_fortune.htm
TU 791 02/11/2013, EQ 800 1/29/2011 , EX Plus FAKO 812, EX Vantage Score 955 3/19/2010 wife's EQ 9/23/2009 803
EX always was my highest when we could pull all three
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