50 comments on “How to Slash Years Off the Life of Your Mortgage

  1. Great post James! I have been paying back as much as I possibly can afford for the past 5 years and if we continue at our current pace our debt will be gone in less than 15 months.

    I’m pretty sure our pace is going to slow over the coming year with only me working, but still it’s good to see how quickly your debts can be paid off by paying extra.
    Glen @ Monster Piggy Bank recently posted..Novemeber 2012 Goal ReviewMy Profile

  2. I personally am not in favor of paying off mortgages faster than you need to, at least if you have a “rock bottom” rate. The interest rate on my loan is so low that I honestly think inflation will be higher long-term, therefore giving me a huge incentive to only pay the minimum. Different people have different goals, though, so I can understand why some do decide to pay it off faster.
    DC @ Young Adult Money recently posted..10 Things I Learned from Working at Pizza HutMy Profile

  3. I am aiming for early retirement too and not repaying my 2.29% mortgage. I think if you take inflation off it is almost a free mortgage! I looked into offset mortgage but the rates were higher, so I am offsetting a bit of mine in a 3% savings account and investing the rest to try to be financially independent faster. Yes it is risky and yes being indebted sucks but it is a mean to an end. Great post!
    Pauline recently posted..Little house in Guatemala, week 5My Profile

  4. Good post. Once we purchase our home it would be our intent to pay off the mortgage as soon as possible regardless of how low the mortgage rates would be at that time. As another poster suggested one needs to do what feels right for them.
    K.K. @ Living Debt Free Rocks! recently posted..Why Do You Blog?My Profile

  5. It all sounds pretty good. I know, personally, my wife and I recently refinanced, but after htat, there’s not much we can do to pay $500 extra a month! THat’s a TON of money! Can’t bike to work because I have tools and go to job sites all around the city every day… it’s tough. But we get by and do the best we can!
    TB at BluecollarWorkman recently posted..The Problem with Working in the CityMy Profile

  6. It’s pretty crazy to see the calculations between a 15-year mortgage and a 30-year mortgage. It’ll make somebody sick when they realize just how much money they’re throwing away.

    Frankly, I’ve never thought about putting my savings into my house and then having the ability to take it back out. What are the drawbacks to these types of loans (higher interest rates or origination fees)?
    Jason @ WorkSaveLive recently posted..Overcoming Murphy’s Law – Our Journey out of DebtMy Profile

    • My particular mortgage has one of the lowest interest rates, no annual fees, or account opening fees, it’s almost a fee-free loan. The draw back was needing a larger than normal deposit, which lowers the risk for the bank, allowing them to offer more generous features knowing we’re less likely to default.

      Some of the banks will offer these features for a trade off in other areas. It’s also surprising how many banks will let you negotiate these sorts of terms if they don’t already offer them.
      James @ Free in Ten Years recently posted..Frugal grocery shopping tips – $100 giveawayMy Profile

  7. After muh though, we are going to try and knock our mortgage out in the next few years. We’ve been agressively paying other debts that are gone, so might as well keep on rolling. The freedom of owning a home outright is just too good and that will free up all kinds of room for other investments. Good luck. It sounds like you are well on your way.

  8. It almost reminded me of the Manulife One account in Canada where you put all your money into one account which is a savings account and your mortgage. We were going to do that but decided not to since we knew we would have the money to pay the mortgage 3 years after we took out our first mortgage. We put extra on our mortgage each month but for the most part we just saved the money in a high interest (rubbish) account. Probably a million better ways to get better money back on interest but we took the easy route. We have saved enough in 3 years to pay off our first house by living below our means. You are right, if you want it bad enough you will grab it. It’s all personal choice and what we value as individuals. Great post Mr.CBB
    Canadian Budget Binder recently posted..The Grocery Game Challenge Dec 3- Dec 9, 2012 Festive PreparationMy Profile

  9. I always knew paying extra for your mortgage helps you save money, but sometimes you don’t realize how much. Thank you for putting it into perspective. Interest sucks!. I also think a good way to save is by refinancing into a 10 year ARM loan with a much lower interest rate. After you do that, then start prepaying aggressively. This way you can have a win-win situation in both rate and total cost you’ll end up paying.
    Boris recently posted..Ten Ways To Invest $10,000My Profile

  10. Great post! Even if you can’t afford to increase your payments each month, you can always try to save up so you can pay a 13th payment at the end of the year. Even a little commitment like that can help to decrease the amount of interest you pay over time!

  11. Aside from the financial benefits of paying off a mortgage early there is also the freedom. Imagine the emotional and psychological benefits of knowing that you own your home free and clear. Sure you’ll have to pay upkeep, insurance and taxes, but not sending in a payment every month surely must be a freeing experience.
    Justin@TheFrugalPath recently posted..Co-signing: A Path Best AvoidedMy Profile

  12. I love the thought of paying off our (future) mortgage way earlier than the amortization period and being able to kick it to the curb. And we don’t even have a mortgage yet!

    There are so many benefits to this, it’s not even funny. Although, living in a place where average home prices are far, far above the $250 and income to housing prices ratio is much higher than average, it sounds a bit harder to do. Not impossible! But hard.
    Daisy @ Money Smart Guides recently posted..12 Months of Goals: DecemberMy Profile

  13. I’m all about slaying the mortgage :-)
    One thought I saw recently at mortgagefreeinthree.com was using a X% increase concept. If you managed to put an extra $100 in the mortgage this month, try to make it $101 next month, $102.01 the next, etc etc. It’s a very manageable increase, but over time it adds up to a LOT of savings.
    Anne @ Unique Gifter recently posted..400+ Stocking Stuffer Ideas for Adults!My Profile

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