Saturday, May 16, 2015
How much extra should I pay to pay off my mortgage faster?
I've heard making one extra payment towards the principal during the year will take about 7 years off your mortgage. Does that extra payment include escrow payments or is it solely based on the house portion? For example, if I pay $800 per month, which consists of $450 for the house and $350 for escrow taxes, should my extra principal payment be the full $800 or just the $450 portion that applies to the house?
Added (1). My question is about the amount that should be paid. Is it the full amount of the mortgage which includes money for escrow of taxes or do I only need to pay the portion that applies to the cost of the house? If you just reply "yes," I don't know which amount you are saying "yes" to.
Read more: How much extra should I pay to pay off my mortgage faster?