Motivation to pay off your Mortgage Faster

Paying Interest on your Home Loan I want to own my home free and clear, but it is hard to make the extra payments come bill time.  Sure I know that if I pay a couple hundred extra dollars now it will save me thousands of dollars later, but that is in 10-25 years. Unfortunately, 10 years comes all too quickly and helps keep me motivated.  It gives a regular reminder of how much interest I am paying and the ability to observe the interest on my home loan in real time… tick, tick, tick… I see my interest slowing increasing.  It suddenly becomes an obsession, a game, a challenge.

Amorty allows for variable payments and extra payments.  When an extra payment is made I am informed as to how much interest I just saved.  These extra payments can save significant money in the long run.  For example, take a typical home loan around $200,000 and an interest rate of 5%. You are paying about $830 of interest a month (which equates to $28 a day) for the first year of the loan. This amount slowly reduces over the life of the loan. Who really wants to give the bank $830 dollars a month? I certainly don’t!

I find that the monthly interest email reminders helps me to meet my goal of paying off the loan a little faster.  I actually have my monthly reminders sent at the same time I create my monthly budget. This way my goal of paying off the home faster is fresh in my mind when I make the larger decisions about where I am going to spend my money. After receiving the monthly reminder I often login to the website to see the interest slowly increasing in real time which is a very motivating factor.  It is an excellent way to feel like you are winning the interest war with your home loan.  Obviously, Amorty could be used with any kind of loan that accrues interest.  When I make an extra payment I feel like I won a small battle and am on my way to winning the war.

tiffA Mom Knows Contributor

About Tiff

Passions in my life include: Family, Vacations, Reading, God, Financial Planning, and Technology. I stay at home with my 4 lovely children who keep me running from one end of town to the other.

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