My house note is $1400/month.Would it help me if I paid $700 - 2X month? Or even $350 - 4X month? In longrun?

Question

I know that if I make one extra note each year - that will make my 30 year note into a 22 year note. I'm just wondering about interest/time if paying more frequently would help also. I just have no idea. Thanks for answering.

Answer 1

It will make a HUGE difference, but ONLY if the lender allows you to apply the extra payments when received, which many do not; it will make no difference if they simply hold your money (and earn interest for themselves on it!) until it is actually due...check the terms of your note!

Answer 2

No other benefit except shortening the time to 22 years.  You understand the concept.  You are saving 8 years of interest.

Answer 3

If your loan contract allows for such payments and the formula by which interest is calculated can handle such payments, then yes it could help.  All that info is in your copy of the contract.

Answer 4

Yes, this will make a big difference. The more the payments you make less interest that you will pay. This is because of compounding effect of interest. On most of these notes interest is compounded monthly so a payment 4times a month will reduce the principal balance resulting in a lower interest amount. If you make ur payments 4x you can reduce your interest amounts quite a bit. Hope this helps :)

Answer 5

Just plug your numbers in here:

http://mortgages.interest.com/content/ca...