Derick wrote:I have heard that if you pay one extra mortgage, payment per year you can pay off your loan 10 years early on a 25 year loan, regardless of how much the total loan amount is. Is this true?
Yes, it is true. You don't neccesarily have to pay the full amount in one lump sum as an extra. What you do, is take your mortgage payment, divide by 12 (months of year) and send this extra with each payment every month. I always send a seperate check and write on check TO BE APPLIED TO PRINCIPAL.
Then check with your mortgage lender to make sure it was applied correctly. As they seem not to deposit where you say, and then it sits out there in Miscellaneous until you get your next statement, which is a month away and you would be still accruing interest.