44% Pay More Than the Minimum Mortgage Amount

By
Real Estate Sales Representative with Keller Williams Realty Inc.
In a recent survey done by CHMC, it was discovered that more than 44% of current home owners are paying more than the minimum payment required for their mortgage. What this means is that these home owners are paying a little extra every week, second week or monthly.

Why would soeone pay more than required? That's a great question! 44% of the home owners want to pay down the mortgage a bit faster (sometimes much faster) which in return increases the equity in their home. This can give them other options on the financial side.

Another good reason to do so is that if the interest rates go up at a certain point in time, they will already be used to the higher payments and it won't affect their lifestyle.

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Rainer
250,283
Karen Church
RE/MAX Integrity - Eugene, OR
RE/MAX Integrity: CDPE, SFR

Glad to know that there is quite a few people doing this.  When I sell a property, I always recommend to pay a little extra on each month's mortgage.

Warm regards,

Karen Church

Aug 22, 2012 04:23 AM #1
Rainmaker
919,726
Chuck Carstensen
RE/MAX Results - Elk River, MN
Minnesota Real Estate Expert

It saves money in the long haul.  Right now we have been working on the other debts before paying off the home faster in our household.

Aug 22, 2012 04:36 AM #2
Rainmaker
195,923
Leigh Ann Holman
Leigh Ann Holman - Century 21 Glover Town & Country - Clarksville, AR
REALTOR - Century 21, River Valley, Arkansas (479)774-5166

I'm suprised about the 44%.  I wouldn't have expected that number to be so high, but I certainly like that it is!  That's great planning!

Aug 22, 2012 04:50 AM #3
Ambassador
1,477,538
Florida Tolbert Team Keller Williams Realty
Keller Williams Lake Nona Advantage III Realty - Orlando, FL
Million Guild Member Cert Luxury Home Mkting Spec

Yes, this is a solid plan anytime you can afford it as it is so heavy on interest early on.

Aug 22, 2012 11:39 AM #4
Rainmaker
340,367
Jean Richer
Keller Williams Realty Inc. - Orléans, ON
No Gimmicks, No Nonsense, only Straight Talk

I was also very surprised by the 44% but I was also happy to see this. It makes it easier in the long run, for so many reasons. 

Aug 23, 2012 11:49 PM #5
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Rainmaker
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Jean Richer

No Gimmicks, No Nonsense, only Straight Talk
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