It's the Principal of the Thing

Real Estate Agent with Re/Max The Producers 20110530

Most people think they’ll have a house payment and a car payment for the rest of their lives but it doesn’t have to be with a plan and a little discipline. The plan is to make additional principal contributions to a fixed rate mortgage to shorten the term and save tens of thousands in interest.



If a person were to make an additional $100 payment each month applied to principal on a $175,000 mortgage, it would shorten the loan by five years six months. If the person were to make $200 a month additional payments, it would shorten the loan by 9 years. $459 additional payment would shorten it to 15 years.

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If a person does make a decision to regularly pre-pay their mortgage, it will be their responsibility to verify that the lender is applying the money to the principal each time as opposed to being placed in the reserve account for taxes and insurance.

In today’s market, a savings account pays around 0.5% or less. Even with the low mortgage rates available, there is still a considerable savings. People who might need the funds in the near future should carefully consider this option due to the difficulty to access equity easily from one’s home.

Make your own projections using the Equity Accelerator.


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EZ Online Mortgage
EZ Online Mortgage - Valley Village, CA
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Hello Michael,

It's great to someone helping others saving money on their Mortgage and reducing princicable.  Keep up the go work.  


Nov 18, 2016 05:00 AM #1
Cody Carmen
Adhi Schools, LLC - Rancho Cucamonga, CA
Market Analysis--Educational Content, Adhi Schools

Great reminder to anyone with a mortgage. This might not be the right decision for everyone, but for those that it does work for it is a great investement.

Nov 21, 2016 01:50 AM #2
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Michael McGlynn

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