03-22-2011, 05:53 PM
mattkime wrote:
>>It's a bit of a waste to make extra payments on an existing mortgage because those extra payments get applied to the BACK END of the mortgage where the amortized interest payments are minimal.
so you're saying that the extra payments don't decrease the interest you'll be paying?
that's usually the default way extra payments get applied. With my previous lender, I could make extra PRINCIPAL payments simply by filling in the amount in the "extra principal" field of my payment stub. With my current lender, I can still make extra principal payments in much the same way.
It's definitely something you want to be sure is getting applied in the correct way (to principal, not interest).