Rainmaker
1,278,194
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

Great Suggestion * I routinely make a 13th payment on my rental property in December - the SOONER it is paid off the BETTER!

Dec 04, 2011 11:41 PM #1
Rainmaker
1,634,444
Mike Cooper, Broker VA,WV, MD
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Absolutely, Wallace.  I'm with you on that!!

Dec 04, 2011 11:43 PM #2
Rainmaker
774,384
Joanna Cohlan
Fresh Eyes For Your Home - Chappaqua, NY
Designing, Decorating & Staging Westchester Homes

Great illustration Mike - the numbers speak loud and clear!

Dec 05, 2011 12:13 AM #3
Ambassador
2,906,548
Liz and Bill Spear
RE/MAX Elite 513.520.5305 www.LizTour.com - Mason, OH
RE/MAX Elite Warren County OH (Cincinnati/Dayton)

Mike, I've always included some extra principal on each payment.  I think our 30 year pays off in about 22 years or less, and obviously we could accelerate that with increased payments.  Nice to watch that total shrink :)

Dec 05, 2011 12:26 AM #4
Rainmaker
421,509
Michelle Francis
Tim Francis Realty LLC - Atlanta, GA
Realtor, Buckhead Atlanta Homes for Sale & Lease

Mike, 

We do this on both our personal property and our investment properties.  It's a great way to shorten the loan timeframes and costs.  Life is good. 

All the best, Michelle

Dec 05, 2011 12:29 AM #5
Rainmaker
2,707,212
Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

Good morning Mike,

Great reminder for everyone, a little extra principal paid each month adds up to a shortened mortgage very quickly!

Dec 05, 2011 12:32 AM #6
Rainmaker
1,634,444
Mike Cooper, Broker VA,WV, MD
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

It's pretty simple, Joanna. 

That's a good plan, Bliz. 

Absolutley, Michelle.  That's a great way to handle your properties.

You bet, Lisa.  Have a great day!

Dec 05, 2011 12:36 AM #7
Rainer
265,745
Gayle Barton, Forsyth County Real Estate
BERKSHIRE HATHAWAY Georgia Properties - Cumming, GA
Cumming GA Homes For Sale (404) 710-0204

Helpful info Mike.  I'm sure many homeowners are confused by just how that works. I'm passing it on....

Dec 05, 2011 12:44 AM #8
Rainmaker
1,634,444
Mike Cooper, Broker VA,WV, MD
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Thanks, Gayle.  That was my goal.  Have a great day!

Dec 05, 2011 12:48 AM #9
Rainer
423,083
Peggy Chirico
Prudential CT Realty - Manchester, CT
REALTOR® 860-748-8900, Hartford & Tolland County Real Estate

Hi Mike - Great illustration of important information.  We just looked into the numbers of paying half the monthly amount every two weeks and even that yielded significant savings!

Dec 05, 2011 12:49 AM #10
Ambassador
1,554,435
John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

Excellent and filled with easy to understand information!  Thanks Mike and make it a great day in all you do!

Best regards from the Q

Dec 05, 2011 12:49 AM #11
Rainmaker
1,634,444
Mike Cooper, Broker VA,WV, MD
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Excellent, Peggy.  I think that works out to an extra payment a year of all principal.  Good for you!

Thanks, John.  You do the same!!

Dec 05, 2011 12:50 AM #12
Rainmaker
2,379,388
Anita Clark
Coldwell Banker Access Realty ~ 478.960.8055 - Warner Robins, GA
Realtor - Homes for Sale in Warner Robins GA

Excellent consumer mortgage information Mike.  If feasible, paying off the mortgage and being debt free is the only way to go!

Dec 05, 2011 01:14 AM #13
Rainmaker
1,634,444
Mike Cooper, Broker VA,WV, MD
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Agreed, Anita.  If nothing else good has come out of the current economy, that lesson has been well learned. 

Dec 05, 2011 01:29 AM #14
Rainer
308,224
Jennifer Chiongbian
Specializing in all types of Manhattan apts & townhouses - Manhattan, NY
Real Estate Broker - NYC

I always try to pay more of the principal when I can.  I think of it as my piggy bank where I keep socking away into it and when I sell, I can cash in the extra money I out in the house.  

Dec 05, 2011 05:15 AM #15
Rainmaker
1,634,444
Mike Cooper, Broker VA,WV, MD
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

You're a smart lady, Jennifer!

Dec 05, 2011 06:55 AM #16
Rainmaker
1,131,165
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

I just saw this post. I knew we could pay extra, I never realized if I paid month #2's full principal payment in month one they'y...not bill me month 2, is that what you are saying? So basically I skip every other month's interest and only pay principle by frontloading it every other month? I'm I getting this right? Love to chat with you about this more.

Apr 11, 2012 08:35 PM #17
Rainmaker
657,117
Joetta Fort
The DiGiorgio Group - Arvada, CO
Independent Broker, Homes Denver to Boulder

I was just explaining this to my client yesterday.  I should do a blog post too, so I don't have to scribble all over scratch paper to do it!

 

Jun 09, 2012 11:30 PM #18
Rainmaker
806,787
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

Yes!  I love that you can prepay and knock interest off and get the house paid off more quickly.  I am trying to do that for sure. -Kasey

Oct 17, 2012 05:46 AM #19
Rainmaker
1,634,444
Mike Cooper, Broker VA,WV, MD
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Good for you, Kasey.  It's a great way to save a lot of money on interest.

Oct 17, 2012 07:07 AM #20
Rainmaker
1,025,715
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

I agree with the philosophy. Get a 30 yr loan and pay like a 15. If something happens to you drop to the lower interest.

Mar 30, 2013 03:24 AM #21
Ambassador
2,343,570
MichelleCherie Carr Crowe Just Call...408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

Yes that is the best way to approach paying off a mortgage early.

Apr 03, 2013 04:11 PM #22
Rainmaker
3,701,313
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"
Hello Mike great information to past on to clients, a little bit does add up.
Sep 14, 2013 04:18 AM #23
Rainmaker
284,678
Mark Neighbor
A O Home Solutions - Sell House Georgia - Buy House Georgia - McDonough, GA
Sell House Fast In Georgia

Hello mike good information. Thank you for posting. Looking forward to reading more from you . 

May 25, 2016 12:43 AM #24
Rainer
58,487
Beatrice M. Stambulski
COMPASS - Sherman Oaks, CA
Sherman Oaks Real Estate

Great info, thank you for the post!

Dec 26, 2017 06:24 PM #25